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Public pensions shake-up outlined
2011-03-10 13:04:33
10 March 2011 Last updated at 16:30 Share this page Delicious Digg Facebook reddit StumbleUpon Twitter Email Print Public service pension overhaul urged by Hutton report
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//Teacher Ron Gordon did not expect a footballer's wage but went into the profession expecting a good pension
The National Association of Pension Funds (NAPF) said the proposals were sensible.
"Lord Hutton's findings strike the right balance between fairness and cost, and have avoided a race to the bottom," said the NAPF's chief executive, Joanne Segars.
"Public sector workers will still retire with a good pension, and it is important that they can bank what they've already built up."
University lecturers, who are already planning to strike over separate but similar changes to their own pension scheme, said good pensions were essential, not an optional extra.
"We need to be doing all we can to try and keep the best and brightest young scientists, academics and researchers in the country, not attacking their few benefits," said Sally Hunt, general secretary of the University and College Union (UCU).
'Not tenable'In general, Lord Hutton argued, a ceiling should be imposed on employers' contribution rates to the pension schemes.
He said the current set-up was "not tenable in the long term".
Some public servants are already in career average schemes with a pension age of 65, such as recruits to the civil service since 2007 and GPs and NHS dentists appointed since 2008.
Lord Hutton, a former Labour pensions minister, was asked by the coalition government to conduct a review of public service pensions soon after it was elected last year.
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