"Urgent review needed" as public pensions gap reaches £1.1 trillion

11/06/2009

Following today’s report from Policy Exchange which calculates that the total liability of unfunded public sector pension schemes could be £1.1 trillion, Liberal Democrat Shadow Work and Pensions Secretary, Steve Webb calls for an 'urgent independent review of public sector pensions' . 

Commenting on today’s report from Policy Exchange which calculates that the total liability of unfunded public sector pension schemes could be £1.1 trillion, Liberal Democrat Shadow Work and Pensions Secretary, Steve Webb said: “We need an urgent independent review of public sector pensions.  The system needs to be fair for both public sector workers and taxpayers, many of whom can’t afford to save for their own retirement.

“The review must look at pay levels in the public and private sector, relative levels of job security, contribution rates and retirement ages.  Top earners in the public sector can build huge pensions quickly and retire early and this must stop.

“The Government must be much more transparent about what is happening

to public sector pensions and enter into an honest debate about what a

fair and value-for-money system would look like.”