Alarm bells ringing over green paper on pensions
THERE is no doubt that a national “conversation” about pensions is long overdue with so many defined-benefit schemes known to be heavily in deficit.
The “black hole” has now topped £1trillion and led to the inevitable conclusion that these pensions are simply too costly to maintain without some sort of reform.
But a green paper from the Department for Work and Pensions suggesting that companies which are in difficulties should be allowed to ditch gold-plated final salary schemes is going to sound alarm bells.
This will mean companies having the legal right to break promises they made to staff and it could affect as many as 11 million employees.
Savers’ total retirement income could be slashed by as much as 30 per cent under an option known as “conditional indexation”.
A green paper is very much a discussion document so it is to be hoped that employees’ concerns can be fully addressed at the same time as the black hole can be plugged.
ONS predicts how many years you'll enjoy your pension
Put that way it sounds like an impossibility for what benefits a company will be to the detriment of the staff. But the present situation is untenable.
That is something that everyone must be agreed upon. Normally one demands swift action from governments but this is one case where it is imperative that decisions are made with immense care and attention to detail.
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Tories way out in front
Conservatives are ahead of Labour by a vast 18 points say pollsters ICM, commanding a 44 per cent share of the vote.
Theresa May’s firm handling of the Brexit issue since she became Prime Minister has clearly impressed the electorate.
Meanwhile Ukip has gained a point and now has a 13 per cent share. This is more bad news for Labour who seem to be talking only to the dwindling band of party faithful.
It is not so many years ago that the two main parties were virtually neck and neck with little to differentiate them in the public’s mind. How times have changed.
The latest poll gives the Tories a lead not seen since the days of Mrs Thatcher at the time of her resounding victory over Michael Foot in 1983.
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It's a dog-find-cat world
A rescue spaniel called Molly is carrying out her own rescue operations tracking down missing cats as the invaluable sidekick of “Pet Detective” Colin Butcher.
There is even talk of seeking out more dogs that can find cats.
One feels there should be a lesson for us all in this happy story of benign canine behaviour towards their notorious foe.