12 Mar 2010

Government Made off?

Listening to the Today programme this morning and the story in The Independent on the public sector pension deficit came up.

A synopsis is that pension funds within the civil service are "unfunded". Rather than putting pension contributions in an account or investement, they are spent. When the person(s) come to retire, the pension is payed direct from the tax payers' money.

In the business sector, this would be called a Ponzi Scheme.

Yet another inconsistancy between the real world and what the government does.

"Fraud is the ready minister of injustice"
Edmund Burke

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