The Pot Gets Smaller, Warns the PSP
Terry Cook, chairman of the Private Sector Partners in the North West (PSP) has warned that the private sector may be unable to subsidise the continuing early retirement for public servants as the ‘pensions pot’ gets smaller.
The decision by the Government this week under pressure from the unions, to keep the retirement age at 60 for civil servants was seen by Terry Cook as ‘giving in’. New entrants to the civil service however, will now retire at 65.
Terry Cook said;
“it’s about time the public sector came into line with the private sector in terms of their overall work package; their terms & conditions, pensions, retirement age and total remuneration. Not only is average public sector wage now well over that in the private sector but their overall pension contributions are lower, if not actually zero and subsequent pension benefits higher.
The police force for example, now seem set as ‘Super PC’s to earn salaries on a par with private sector workers, with awards for additional skills and performance. What the Home Office plan doesn’t talk about is that those private sector workers don’t already benefit from the early final salary pension scheme that the Police enjoy.
Demographics show that fewer young people are supporting a growing older population and that the proportion of public sector workers in the overall working population is increasing dramatically. The pot of money available for pensions is getting smaller. UK plc needs to be careful it doesn’t make promises for the future of its pensioners, it can’t keep.
In 40 years time it is almost certain that nobody in the private sector will be able to retire at 60 with a full final salary pension. This decision by the government needs reviewing at the earliest opportunity.”
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Private Sector Partners NW Ltd. (PSP) was formed in March 2002 to give the private sector in the North West a voice on issues of concern to businesses in the North West and an easier way for the public sector to communicate with business and industry within the region. PSP has the long term health, wealth and growth of the economy in the North West in mind. Today, the PSP represents the views of 140,000 businesses, involving 1.2 million employees. This is over a third of all businesses in the region and a third of all employees.
The following 20 organisations are members of the PSP: · Association of Chartered Certified Accountants 4,500 individuals · British Printing Industries’ Federation 350 businesses · Chartered Institute of Building 4,500 individuals · Chartered Institute of Marketing 3,100 individuals · Confederation of British Industry 2,000 businesses · Engineering Employers’ Federation, North West 800 businesses · Environmental Industries Commission 150 businesses · Federation of Small Businesses 18,000 businesses · Forum of Private Business 2,600 businesses · House Builders’ Federation 90 businesses · Institute of Chartered Accountants in England and Wales 10,500 individuals · Institute of Directors 2,700 individuals · Institute of Environmental Management and Assessment 800 individuals · Institute of Financial Accountants 460 individuals · Institution of Electrical Engineers 8,000 individuals · Law Society 8,000 individuals · National Farmers’ Union 10,000 businesses · Road Haulage Association 1,400 businesses · Royal Institute of British Architects 1,800 individuals · Royal Institution of Chartered Surveyors 9,000 individuals
There is no intention whatsoever to limit the independence of members who wish to pursue their particular interests separately from any association with the PSP.
The PSP has focused its efforts on: · Helping the Northwest Development Agency (NWDA) to develop its strategy and communications with the private sector. · Offering contact with senior people from the private sector to publicly-funded bodies · Securing the influence of businesses during the Government’s proposals for changes to legislation on planning. · Strengthening the modernisation of local government. · Creating the private sector’s exchange – a series of events for members and guests. · Submitting responses to proposals from Government. · Exploration of the private sector’s place in governance of regions · A regional conference for smaller firms · Review of socially responsible investment and corporate social responsibility · Inclusion of professions in the processes for making decisions. · A survey of businesses.
Bryan Gray, chairman of the NWDA led the first PSP Exchange in September. Marc Sussman, a former commercial counsellor in the administrations of Presidents Jimmy Carter and Bill Clinton, conducted a masterclass in October on doing business with America. Stephen Timms MP, Minister of State for e-commerce, was the principal speaker at a meeting sponsored by BT in November. Gary Titley MEP (and leader of Britain’s Group of Labour MEPs) considered in February opportunities for businesses in the expanded European Union, and Ivan Lewis MP, minister for skills and vocational education, presented a workshop during May. Frequent consultations on the needs of small firms in the Region have started with the Alliance for Skills and Productivity and the Small Business Service. PSP has co-operated with initiatives by the Learning and Skills Council, Lancashire and has signed an agreement with Jobcentre Plus. It has had discussions on the agenda for reform of planning with the Department for Transport, Government Office for the North West and NWDA. PSP has two places on the Programme Monitoring Committee, European Social Fund and one member on each of the Northwest Marketing Forum, Barrow Task Force and Cumbria Vision. Terry Cook is the PSP’s Chairman. A former Regional Manager of the Institute of Chartered Accountants in England and Wales and Regional Director of the Institute of Directors, Terry took over the role of chairman from PSP founder, Len Collinson.
Press Contact: Jane Harrad-Roberts Consultant Director, Marketing Projects Email: jane@marketingprojects.co.uk Mobile: 07785 395705 Tel: 01244 330000 Press hotline: 01244 330101 Additional comments available from: Terry Cook Chairman, Private Sector Partners NW Ltd. Email: Buccaneer.Consulting@blueyonder.co.uk Mobile: 07876 035934
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