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Pension woes… redux January 17, 2017

Posted by WorldbyStorm in Uncategorized.
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Grim reading in the SBP that:

Irish Life, the country’s largest pension provider, is set to close its own defined benefit pension scheme, despite the fact that it has a huge surplus, it is understood.

Where is the surprise. The pensions industry has all be run hot foot towards ‘providing’ defined contribution schemes. Why should it be different for them in relation to their own staff. And the issue of sustainability – well, that’s always seemed a thin excuse from the off. In IL’s case they have, according to the paper, ‘a surplus of €323m and 1,178 members with an average age of 43’.

Clare Daly had a strong response:

Jus like the CRC, INM and others this is another cynical opportunity for employers to abandon their responsibilities to their employees in order to enhance the value of the balance sheet.

But that’s the thing. The companies feel no sense of responsibility to those employees, or any others.

Ironic too that a few weeks back the SBP business section noted that one of the possible events of the year was the introduction of ‘mandatory’ pension schemes for all. And there we see the companies pushing yet more responsibility on to the state – despite the abysmal level of wages paid in this state.

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1. FergusD - January 17, 2017

It is the same everywhere. We are told pension funds in the UK don’t have the cash, but check out an article in the FT recently:

https://www.ft.com/content/a8e34726-d67e-11e6-944b-e7eb37a6aa8e

(if the link works). Basically blue chip companies could clear all their pension fund deficits with a single year’s dividends paid to shareholders.

“Nearly half of all FTSE 100 companies could have cleared their pension deficits with payment of one year’s dividends, according to new analysis that is set to reignite the debate over priorities for corporate cash.”

The Pensions Regulator (UK) has said that many FTSE 350 companies could quite easily clear their pension fund deficits by witholding or reducing divident payments for one or two years – they obvioulsy chose not to do that – and pension deficits have risen while dividends have increased.

So it looks like we are told, as usual, a load of bulls**t about how pensions must be cut.

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2. GW - January 17, 2017

Minimise taxes, deny social responsibilities, parasitise public services, externalise the costs => maximal capital accumulation.

Among the costs for capital accumulators is the care in old age of those who made their profits possible in the first place.

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