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Pension deficit of more than £200 million at Plymouth city council

Plymouth city council has a deficit of more than 219 million pounds when it comes to its pension scheme, according to the taxpayers alliance.

The group argues the taxpayer is liable for that black hole.

Figures suggest the local authority's assets, which are worth over 455 million pounds are dwarfed by their liabilities of more than 670 million.

The Taxpayers Alliance says Plymouth city council is part of the local government pension scheme, which means they can't do much about it.

However she says the government should and that employees should pay increased contributions.

It follows the news that the government is planning to ask many public sector workers to make higher contributions.

Plymouth city council say their pension fund is administered by Devon county council and that the deficit is largely due to a fall in the stock market and the requirement that pension schemes are fully funded.

They add that the deficit is calculated on the assumption that they had to pay all of their outstanding pension funds out at once, which would never happen.

They expect the deficit to reduce when the stock market picks up.

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