Rabbitte's failure to tackle Labour’s Pension Problems

national | worker & community struggles and protests | opinion/analysis

Thursday March 30, 2006 19:04

by Big Jim

The Labour Party like other organisations operates a pension scheme for its employees, in Labour’s case it’s a defined benefit scheme which offers employees a pension based on a fixed percentage of their salary upon retirement. The staff pay in 5% of their salary each year and in return the party is supposed to cover the balance.

Excellent program you might say, that is until you learn since 2004 the scheme has been running a massive deficit of €432,000 which represents almost 50% of the Party’s entire net book value*.

The scheme is in real trouble and the leadership know it, that’s why they set up a working group to address the issue, however in the past 2 years nothing has happened.

Rabbitte has abysmally failed to make any progress, leaving the long serving staff in Ely Place with the prospect of having little or no pension when they retire.

It’s time Rabbitte & his spin doctors shuffled off the stage and allowed others to sort out the party.

* Labour Party Report 03-05

Comments (1 of 1)

Pensions

by Little Joe

Thu Mar 30, 2006 19:12

Labour is not the only party to have pension problems. The Socialist Party employees are in a far worse position. When Dermot Connolly was ousted from the position of National Secretary he had no pension contributions to carry with him. Yes, not a penny in pension funds was provided by the SP.

Nor do the present employees of the SP (apart from those employed in the Dail) have access to pensions. But this is in breach of Employee Protection laws. It would really be embarassing if the SP were to be dragged before the courts for breaching the law. Think of the laughs Michael McDowell would have.

In the interests of the party, its employees, the Left as a whole and in the interests of the Working Class the SP must redress this issue. Proper backdated pension provision must be made for all SP employees.