The FSB condemns Her Majesty's Government for its perpetual and extravagant support for final salary pension schemes provided to public sector workers.

Proposed: Brian Heward

Seconded: Rod Handford

Region: Lincolnshire

The motion was carried

Personal votes for:         133

Personal votes against:   42

Branch votes for:            98393

Branch votes against:     30167

This motion proposed by Brian Heward from Lincolnshire Region was concerned with the final salary pension schemes provided to public sector workers.  It is generally acknowledged that there is a pension crisis in the UK with 20/30 yr olds not saving enough for retirement.

Proposed: Brian Heward, Lincolnshire Region

Started by making the point that 25% of council tax goes to public sector pension schemes and criticised the rocketing cost of goldplating such schemes under the Labour Government.

For every one job created in the private sector, 7 are created in the public sector.

Brian quoted research by Ross Altman, a Government advisor, which describes the public sector pension schemes as 'unsustainable'.

There is an urgent need for a review of the current situation with Government needing to tighten its belt where public sector pensions are concerned.

Brian urged conference to vote for the motion.

Rod Handford, Lincolnshire Region

Listed the multiple benefits available to public sector workers under such public sector pension schemes citing that many workers get their pensions boosted just before retirement.

The situation is unsustainable and urged conference to vote for the motion.

Mike Cherry, Chair of the Pensions Committee

For the last three years, ever since the Government started consulting on its new scheme which will come into force in 2012, Policy has been fighting hard to reduce any impact on members as I reported to National Council.

It is blatantly wrong when members in many cases cannot afford a pension for themselves or their employees that they are instead funding generous public sector pensions through their taxes.

With the changing demographics of the UK meaning that in 2050 there will only be two workers for every worker we also have to ask whether unfunded public sector pension schemes can be sustainable.

It used to be that those in the public sector had a good final salary pension scheme to make up for the fact that their salaries were often lower than those in the private sector. But this no longer remains the case.

However our focus will remain on minimising the administrative impact and the cost to members as a result of the governments legislation.

Whilst we have clearly raised this question, there have been some small reforms in this area but we feel it will take a change by government to stop final salary schemes.

Because this is not a direct business issue Policy remains critically neutral.

Karl Craig-West, Leicestershire Northants and Rutland Region

Pensions is a hot topic.

Made the point that FSB members wouldn't begrudge business people from receiving large pensions, so why should we have a problem with public sector workers receiving a generous pension?

Urged conference to vote against the motion.

Bernard Juby

Civil servants get an unfair advantrage when it comes to pensions. 

It would take 2.5 times the average annual income to but a typical public sector pension scheme.

Urged conference to vote for the motion.

Bob Osbourne

Pension blackhole makes public sector deficit look trivial

Asked who would begrudge an injured soldier or a nurse a decent pension at the end of their career.

It is wrong to see all public sector workers as part of the Oxford/Cambridge elite.

Criticised the motion for being overly complicated - needed to be more precise.

He also said that conference motion votes should be binding in terms of FSB policy.

He urged conference to vote against the motion.

Derek Williamson:

MPs are on inflated pensions that is out of line with the rest of the economy.

In Surrey where he is a councillor of all the money that goes into the fire and ambulance service, 55% goes on pensions and 45% that goes to policing goes on pensions.  How long will it be before it will be 100% and we dont get any services in return?

Urged conference to vote for the motion.

Carolyn Reid:

This motion would penalise public sector workers who do not command a decent salary.

Urged conference to vote against the motion.

Brian Heward, Lincolnshire

Thanked people for their contributions.

Made the point that nothing in the motion is retrospective in terms of public sector provision.

Asked why small businesses should guarantee such schemes when they can't afford a decent pension for themselves or their employees.

Urged the FSB to lobby on the issue believing it to be a popular issue with voters.