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Comments on the revised proposals the Government has made for public sector pensions
Commenting on the revised proposals the Government has made for public sector pensions,
Graeme Muir, Partner at Barnett Waddingham, said:
“We now seem to be back to a 60th accrual rate from the originally proposed 65th for public sector pension schemes after 2015. If that's where we end up then at least it will mean that most public service employees will earn the same amount of pension each year as they already earn.
“The fact that Mr Cameron has indicated to the Commons that the changes will mean in some cases even bigger pensions than before will most likely give some reassurance to public sector workers, however, the bottom line is that whilst some may receive bigger pensions than before they will have to pay in more and for longer to get their bigger pensions – an outcome that seems fair enough.
“The suggestion that the Local Government Scheme could still retain a final salary scheme if it could be justified is intriguing - Lord Hutton does no doubt not believe it. It does seem hard to believe that whilst there are good reasons to treat the Local Government Pension Schemes (LGPS) differently; that this extends to retaining a final salary formula - albeit a career average scheme with earnings revaluation - is not a million miles away anyway.
“The next exciting installment has got to be the reaction from the unions - will the strike be called off? The nation is on the edge of its seat....."
For more information please contact either
Graeme Muir or
Steph Gold