How should public sector pensions be reformed?
The former Labour minister was asked to look into the cost of public sector pensions. Workers covered include those in the civil service, NHS, and local government. Such pensions are costing more money because people are living longer.
As well as asking people to pay more contributions into their pension plan, the commission is also considering changing the scheme from a final salary structure to a career-average structure. The pension age might also be extended beyond the current level - typically 65. The commission's final report will be published in time for the 2011 Budget.
Public sector workers argue that they have taken lower pay than they could get in the private sector in order to benefit from a better pension provision.
Should the pension age for public sector workers be increased? Should public sector workers pay more towards their pension? How can public sector pensions be made more affordable? Are you a public sector worker? What do you think about the recommendations?
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