Main points of the public sector pensions review
Former Labour minister Lord Hutton has set out proposals for wide-ranging reforms to public sector pension schemes. These are his main recommendations:
* Public sector workers should be moved from final salary pensions to career average ones for future accruals, although he stopped short of making recommendations for the schemes' design;
* The new schemes should be in place by the end of this Parliament in 2015;
* The Government must honour in full the pensions that workers have already built up in final salary schemes, maintaining the final salary link for past service;
* Pension schemes should be the same for workers of all incomes, but tiered contribution rates should apply to higher and lower earners;
* The normal retirement age for public sector workers should be the same as the state pension age, meaning it would increase to 66 for both men and women by 2020, apart from members of the armed forces, police and firefighters, who should have their retirement age raised from 55 to 60;
* Members should have a greater choice over when they can start drawing their pension, enabling them to opt for earlier or later retirement, as well as taking a flexible approach to giving up work;
* The different public sector pensions, which have different contribution and accrual rates, should move towards a common framework, although Lord Hutton is not proposing that a single public sector scheme should be set up;
* A clear cost ceiling should be introduced for the proportion of pay that taxpayers will contribute to public sector workers' pensions;
* The Local Government Pension Scheme should continue to be funded, but all other schemes will continue on an unfunded basis;
* Workers and their representatives should be involved in a consultation process on the design of the new schemes;
* Public sector schemes should have a Pension Board to ensure good standards of governance and effective administration, while they should also have independent oversight;
* The schemes should provide regular benefit statements to members;
* The Office for Budget Responsibility should provide a regular published analysis of the long-term fiscal impact of the schemes.
- 1 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 2 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
- 5 UK weather: Britain braced for snow as arctic air mass moves in
Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
Ian Brady: Moors murderer announces his support for Ukip and the SNP
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
UK weather: Britain braced for snow as arctic air mass moves in
Bali Nine executions in Indonesia: Death row British grandmother Lindsay Sandiford says she 'just wants to get it over with'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
£22000 - £25000 per annum: Recruitment Genius: An IT Installation / Commission...
£16000 - £25000 per annum: Recruitment Genius: You will maximise the effective...
£25000 - £35000 per annum: Recruitment Genius: This Bridgend based software de...
£21000 - £22000 per annum: Recruitment Genius: A specialist retail and brand c...