ILC-UK has today responded to the interim report of the Independent Public Sector Pensions Commission. Chief-Executive Baroness Sally Greengross said:
"ILC-UK welcomes the publication of the interim report. Public sector pensions are a huge challenge within an ageing society. It is right that the coalition government addresses this challenge urgently, in an objective manner and based on evidence. In particular, we welcome the commitment to protect pensioners' accrued rights. However, using higher contributions from today's public sector workforce to fund exisiting entitlements risks undermining intergenerational fairness."
Our response is published in full in an article by Dr Craig Berry, Senior Researcher at ILC-UK and former Policy Advisor on pensions at HM Treasury (see below). In his article, Dr Berry argues in addition that moves towards raising the normal retirement age for public sector schemes, and away from 'final salary' entitlements, should be cautiously applauded. As long as such measures do not allow the government to scale back public sector pensions provision through the back door, they could allow the public sector to pioneer a more flexible approach to work and retirement, and set realistic benchmarks for the private sector to compete with.
For any enquiries, contact ILC-UK: firstname.lastname@example.org or 0207 340 0440.
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