Public sector pensions for more than 40,000 town hall staff, such as bin men, librarians and social workers, are unaffordable – by more than half a billion pounds.
The revelation comes on the day tens of thousands of public sector workers went on strike in protest against government changes to schemes.
But as hundreds of schools close, public transport services are cancelled and council offices close, The Argus can reveal that town hall pension pots face a shortfall of £560 million.
Pension liability
Two of the major public sector funds covering Sussex are worth less than their total liability.
The East Sussex Pension Fund, which currently has more than 21,000 active members from councils across the county, is valued at £1,867 million.
This is only 87% of its liability – the amount it owes in future pension payments.
This compares with 89% in 2007.
Sean Nolan, of East Sussex County Council, said it had the fourth best funded out of the 89 local government schemes in the country – one that could be 100% funded within 20 years.
The West Sussex fund, which has nearly 22,000 contributors, is worth £1,759 million.
That is £288 million below what it needs to meet its future payouts – it’s operating at 86% of its liability.
The Government is proposing that public service workers should pay more towards their pensions between April 2012 and March 2015.
In the longer term, the government is using Lord Hutton’s review of public sector pensions to redesign the system from April 2015.
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