(RDSB.L) Royal Dutch Shell PLC B Buy/Sell

LKH,

I was thinking about public sector employees pensions rather than the state pension.

And it can be cut. And it will be cut.

It is a choice. Either be honest about it and tell the public sector employees that they wont get as much as they had previousl been promised by someone who was not fit to make that promise. Then cut the pension entitlement to a level that the taxpayer can reasonable support.

If this were done, the law would need to be changed to stop the workers suing for breach of contract. If the public sector workers actually managed to stop this from happening, it wont help them because they still wont get what they thought they were going to get.

Because if their pensions are not cut explicity, the government in the future will have to devalue the currency to pay for those pensions, reducing what pensioners then will get in real terms. If that happens it would be a kind of poetic justice for the pensioners, as they wouldnt accept an honest and necessary cut, so instead they will have a cut via subterfuge.

If the cut is via subterfuge, pensioners could really be stiffed. They just have to look at Zimbabwe to see what a government can do to a currency if the need arises. It is difficult trying to get the real value of your pension back when it has been wiped out by hyperinflation when you are 70 years old. How they will wish for a reduced pension and a stable currency! But they will have made their choice, there will be no going back and making that decision again.

Tough choices await. The honest choice is always the best one, but like you I believe that the dishonest one will be taken. We all need to face up to this pensions truth sooner rather than later, or the consequences will be much worse for us all.