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This is a spare 'blog in case my main 'blog at markwadsworth.blogspot.com isn't working
12.1 As background, it is useful to compare the relative figures for private and public sector state provision…
• The Government are deliberately understating the liabilities of unfunded Public Sector pensions schemes. As at March 2005, the government estimated the liabilities (the ‘discounted net present value’) of accrued public sector pensions – which in future cash terms will amount to around £3,762 billion – at £530 bn. Using more realistic assumptions, Neil Record calculated the liabilities to be £1,025 billion, which is now widely accepted as the best estimate…
12.3 There also needs to be proper accounting for public sector pensions liabilities. Although this will not ‘solve’ the issue, it will at least highlight it. A reasonable suggestion is that public sector pension schemes liabilities be calculated under normal accounting standards and accounted for as such in public sector accounts. This would prevent a future government hiding the cost of current promises.
Landmark documents published today show that the government’s liabilities for public service pensions are more than £1.13 trillion.
The figures, which also show Private Finance Initiative liabilities of more than £40bn, are included in the first set of Whole of Government Accounts, published by Chancellor George Osborne and the Office for Budget Responsibility’s first report on the sustainability of the public finances.