Presentation on theme: "FACT AND FICTION. FICTION Pensions are paid by the government out of taxpayers' money. FACT Pensions are paid by the National Insurance Fund out of contributions."— Presentation transcript:
FACT AND FICTION
FICTION Pensions are paid by the government out of taxpayers' money. FACT Pensions are paid by the National Insurance Fund out of contributions to the fund; it is our money.
FICTION You knew about pension freezing before you emigrated. FACT Nobody told us. A few found out "on the gangplank" after they had committed to a decision to emigrate.
FICTION Australian residents have their pension frozen because Australia terminated the reciprocal agreement. FACT Australia terminated the reciprocal agreement because Australian residents already had their pensions frozen, and Britain refused to negotiate.
FICTION It would cost an awful lot of money to unfreeze the frozen pensions. FACT Most recent figure is £440 million annually, which is less than 1% of the total annual outlay for pensions.
FICTION The red segment is the cost of unfreezing pensions in the distorted view of politicians. The blue segment is the accrued annual surplus in the NIF The green segment is the annual new surplus in the NIF
FACT Corrected picture. The cost of unfreezing pensions is a minuscule amount, almost invisible on this chart.
FICTION AND FACT Compare the two – Fiction and Fact
FICTION There is no fund. Benefits are paid out of current contributions. FACT There is a huge and growing surplus ever year. Surplus funds are invested, just like any other pension fund.
THE NATIONAL INSURANCE FUND Ever growing. Always enough to pay parity pensions to all expatriates.