£100 Billion !! My mother told me not to believe all I read in the papers , the internet must b=e the same

inally we know the truth. Gordon Brown was warned by Treasury experts of the effect of removing the tax relief for pension funds before he delivered his first Budget in June 1997.

But the Chancellor pressed ahead regardless despite warnings of a 'big hole' in private pensions and serious risks to the stability of the system.

The decision by Brown and his then top adviser Ed Balls (now a Treasury minister) has been even more far-reaching than officials thought. There has been a wholesale retreat from 'final salary' pension schemes, the gold standard of retirement provision, leaving millions worse off.

Just as damaging is the massive gulf that has opened up between public sector pensions and those in the wealth-creating part of the economy.

Best estimates by actuaries who monitor the retirement industry suggest that Brown's decision has cost company pensions more than £100billion. It is the cost of funding this shortfall which has led to the flight from final salary pensions.

See this link for the full article

http://www.thisismoney.co.uk/news/columnists/article.html?in_article_id=419026&in_page_id=