Pensions write-off means I’m now hit three times over

Published in the Financial Times: December 22 2008

From Mr Clive Grimley.

Sir, I am struggling with the concept that the chancellor has “written off” £100m of taxpayers’ money (“Darling to write off £100m in pension blunder”, December 16). While he may claim a write-off I find it astonishing that he is not seeking to recover overpayments of public sector pensions provided by these unfunded schemes. Trustees of private sector pension schemes would normally be required to recover sums paid in excess of the pensions required under the scheme’s trust deed and rules.

The chancellor’s solution is a triple whammy. As well as funding my own pension, I contribute to the cost of public sector pensions via tax and now I have to fund these overpayments.

In order to boost consumer spending during the festive season let us hope the public sector spends liberally as we in the private sector will now have little scope to do so.

Clive Grimley,
Barnett Waddingham LLP,
London EC2, UK

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