Magazine article Public Finance

Public Pensions 'Need to Be Levelled Down'

Magazine article Public Finance

Public Pensions 'Need to Be Levelled Down'

Article excerpt

Public sector pensions are not affordable in their current form and need to be levelled down to private sector levels, according to a pensions expert.

David Davison, a director at independent actuaries Spence and Partners, told Public Finance he was concerned by the evolution of a two-tier pension system. The differences between public and private sectors had become a 'huge gulf. 'There needs to be some sort of parity; he said.

But reforming private sector pensions to make them consistent with the public sector was not achievable. 'The private sector cannot afford to pay these levels of benefit There's too much of a risk exposure. Levelling down has to be the only way Davison said. 'The civil service has taken an enlightened first step by moving to a career average scheme.'

Pensions Policy Institute research has shown that employers contribute around £4,000 a year per employee in the public sector, compared with around £1,600 a year in the private sector. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.