Are public sector pensions a far better deal?

KEVIN CASSIDY (Letters) makes a good point about public sector employees making sizeable pension contributions from an early age, but misses the thrust of the criticism of defined-benefit pensions in the public sector. These are fully index-linked and the recipients know exactly what their annual pension will be worth at all points in their career. The effective employer contribution is between 25 and 40 per cent of salary, compared with between 3 and 10 per cent in the private sector. Yet the recipients of this public sector largesse seem to regard it as a basic human right.

JOHN BECKETT, Farnham, Surrey.

IF MR Cassidy works in the public sector, his 15 per cent contributions buy him an inflation-proofed final salary pension. Those paying 15 per cent into a private sector scheme will receive a pension that is not inflation-proofed and depends on the stock market. Early retirement in the public sector guarantees that the pension’s purchasing power stays the same throughout retirement.

D. WRIGHT, Harvington, Worcs.

THE main factor in the imbalance between public and private pensions is that the Government lavishes money created by the private sector on gold-plated public sector pensions. While private sector employers contribute between 7 and 10 per cent of salary, the Exchequer contributes 20 to 30 per cent to public sector employees.

ANGUS S. THOMSON, droitwich Spa, Worcs.

I PAID into a private pension for 35 years, never missing a payment and increasing the amount every year. Then Gordon Brown decided he needed more cash, so he stole over a third of my pension. I wonder how Mr Brown is managing on his pension, which I am paying for.

STEPHEN MILLICAN, Manchester.