Neil Record, pensions guru, calculated that the true cost of unfunded pensions promises in the NHS* was about 35% of salary. In other words, if it were a funded scheme in the private sector, employer/employee contributions would have to be around 35% of headline salary.
The purely notional contributions are currently employer 14% and employee 6%.
Well, whoo-pee-do, the NHS has realised that this is a tad on the low side, so they have increased employee contributions by ... (wait for it) ... a whacking 0.5%.
And these are still notional contributions. So all it means is that for a headline salary of £20,000 the true gross will be £18,700. The figure £1,300 gets jotted down on the employee's contributions history, but it doesn't get paid into any sort of physical fund.
*under the old retire-at-sixty final-salary scheme, that is closed to new entrants but still applies to those already in the scheme.
More debunking of Piketty.
13 hours ago