Strikes are already being planned in reaction to proposals, published by Lord Hutton, which will force public sector workers to work longer for a less generous pension.
The Labour peer’s landmark report, published today, following a nine-month review, recommends that public sector workers should be stripped of their final salary pensions and instead have their schemes linked to average earnings, while they will also be expected to work longer.
From 2015 most public sector workers will retire at the state pension age which is set to rise to 66 by 2020, while those in the fire service, police and the armed services, who at present are able to retire in their fifties or earlier, won’t be able to receive a pension until they reach the age of 60. Accrued rights would be protected and the final salary link is expected to be retained for past service for current members.
Lord Hutton’s controversial proposals are thought likely to lead to many public sector workers, currently in their fifties, quitting their jobs rather than being forced to work for 10 or even 15 years longer than they had intended.
The peer said: “I want the system to be fairer; fairer to scheme members themselves and fairer to taxpayers obviously. I want the reforms to address the rising cost of these schemes. I want to make sure we can deliver adequate good quality retirement incomes for public servants and on a sustainable basis. If we go on along the path we are which is basically to deny that costs are rising, to deny that there is rising life expectancy, and just assume we can carry on, we are heading for the rocks and I don’t want that to happen.”
However, some unions are already preparing strike action for June with schools, courts and job centres all likely to be affected.
http://www.guardian.co.uk/society/2011/mar/10/pension-reforms-public-sector-hutton