Tribunal Service Report
by Philip
As you may know Employment Tribunals comes under the Tribunal Service Department. Each year they produce a report.
Alongside the normal stuff about KPIs being met-90% of calls being answered after 6 rings (was an unnamed Tribunal in London included we wonder!), 85% of claims being heard within 26 weeks, MPs letters answered within 10 days etc etc.
I was interested to note that members of the Tribunal Service are eligible to join the Civil Service Pension scheme (which is unfunded ie paid for out of general taxation.)
Befitting a large organisation, there are a number of different types of final salary scheme. Employees who join the pension scheme do get remarkable value for money. If they contribute the princely sum of 1.5% of pensionable earnings, their pension accrues at the rate of 1/80th of salary per year of service, together with a lump sum of 3 time final pension.
If members want to contribute 3% their pension accrues at the rate of 1/60th of final salary.
Assuming an employee has a salary of £120k (and certainly the chief executive is in that range) for an annual contribution of £3600.00 the employee is gaining an annual index linked pension of £2,000.00. So put in £3.6k once, and get out an index linked £2k pension for each year of retirement. That return on an income basis equates to 55%.
It surely can’t be right that tax payers, alot of whom cannot afford to contribute to their own pension, are making such a substantial contribution to other people’s. But hey ho, where does fairness come into it.
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If you are going to talk about ‘fairness’ you should consider the complete remuneration package, not just the pension.
Richard said at July 22nd, 2008 at 2:46 pm
Fair comment Richard but if you accept public sector workers have a lower remuneration package, they also have a far lower risk of being dismissed. The trade off for lower pay (if the assumption is correct) is higher job security.
Philip said at July 22nd, 2008 at 2:51 pm