Government outlines reform for public sector pensions

The government has outlined plans to link the public sector retirement age to state pension age, which is rising to 66.

Danny Alexander, Chief Secretary to the Treasury, said that the public sector cannot be excluded from pension reforms, as 750,000 public sector workers are threatening to strike on 30 June.

The government is set to confirm plans to base public sector pensions on workers’ average salaries.

Mr Alexander’s announcement is expected to explain that that most public sector workers will see their retirement age, which is currently set at 60, linked to the state pension in the future.

Alexander is also expected to safeguard public sector workers on less than £15,000 by not increasing their pension contributions. Those earning less than £18,000 will have their contributions capped at 1.5%.

Mr Alexander will say: "There is an indisputable case for reforming public sector pensions to ensure that they are affordable and sustainable but still amongst the very best available.

"That case is simple. People are living much longer - the average 60 year old is living ten years longer now than they did in the 70s. This advance comes at a price. It is unjustifiable to ask the taxpayer to work longer and pay more so that public sector workers can retire earlier and receive more themselves."
Comments (0)
Latest Stories
Workers bring kids to work to protest endless summer
Employees have bought their kids to work to protest the long summer holidays...
Job centre staff banned from wearing burka
New requirements mean that...
4 things that will get your computer monitored at work
IT departments have the ability to see everything that you do on company equipment...
Retiring owner gives company to staff
A globally-renowned business has ceded the running of...
New report reveals what the workplace of the future will look like
Considering the social and technological leaps our working lives have taken in the past decade alone, it’s daunting to think what the work place could be like in 20 years’ time...
Make it illegal to sack pregnant women, say MPs
Action is needed in order to protect new and expectant mothers in the workplace...
Senior policewoman resigns as values 'no longer fit'
The policewoman responsible for protecting the Duke and Duchess of Cambridge has...
Best UK companies for work-life balance revealed
A surprising number of well-known firms lost their position on the list...
Facebook fires human editors for robots & it all goes wrong...
Following Facebook’s announcement on Friday that employees who worked on the ‘trending’ section of their website would be made redundant...
Amazon trials four-day working week for HR tech team
Amazon is piloting a four-day working week to experiment how teams working 30-hours every week would benefit...
Read more...