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Fact or Fiction |
There is a lot of misunderstanding about frozen pensions among Ministers and other MPs. Here we expose the fictions and correct them with the facts.
| Fiction | Fact | |
|---|---|---|
| It would cost an awful lot of money to unfreeze the frozen pensions. | Most recent figure is £400 million annually, which is less than 1% of the total annual outlay for pensions. | |
| Pensions are paid by the government out of taxpayers' money. | Pensions are paid by the National Insurance Fund out of
contributions to the fund; it is our money. See National Insurance Fund |
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| You knew about pension freezing before you emigrated. | Nobody told us. A few found out "on the gangplank" after they had committed to a decision to emigrate. | |
| Australian residents have their pension frozen because Australia terminated the reciprocal agreement. | Australia terminated the reciprocal agreement because Australian residents already had their pensions frozen, and Britain refused to negotiate. | |
| There is no fund. Benefits are paid out of current contributions. | There is a huge and growing surplus ever year. Surplus funds are invested, just like any other pension fund. |
Please contribute by suggesting other fictions that need to be corrected
Email: Facts and fictions