Public sector pensions cost twice as much as previously thought and require radical reform, a commission has concluded.
These pensions are worth an average of 40% of a salary, with an increasing burden falling on taxpayers to pay.
Only half of the pension comes from contributions from workers (6%) and employers (14%), the Public Sector Pensions Commission said.
In a strongly worded report that included a series of recommendations for changing the system, the commission said that “justice and good economics” meant that pension costs should be covered by employee and employer rather than future taxpayers.
But the TUC argued the commission was set up by private sector employers.
Read more at BBC Health.
Tags: Pensions
