0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

Forgotten your password?

pensions report is causing controversy, but is there really any alternative?

11 March 2011

Lord Hutton has published 27 recommendations in his new report on public sector pensions. This follows his interim report in October 2010 which concluded that public service pension schemes were too expensive and unsustainable. The proposed changes are intended to simplify the schemes, be fairer to those on low and moderate earnings, and address socio-economic changes.
Hutton advises that final salary public sector pensions should be phased out by 2015 and replaced by a new career average scheme to make the cost of providing those pensions more affordable. He also proposes increasing the normal retirement age for public sector schemes to 65, rising eventually to 68, in line with proposed reforms to state pension age, and building ‘automatic stabilisers’ into new schemes so members either increase their contributions, or take a smaller pension.

There have been warnings that if the proposals are implemented, the lowest paid civil servants will drop out of public sector pension schemes and there will be wide-spread industrial action. It is uncertain at present whether Hutton’s proposals will be adopted by the government; what is certain is that many people will be keeping a close, critical eye on what happens next.

related opinions

Home Office Central Registry for modern slavery statement goes live - first universities publish statements

The Home Office recently launched a central registry for modern slavery statements. A growing number of educational organisations, including a number of universities, have published statements on the registry.

View blog

Equal pay at ASDA stores - appeal to the Supreme Court unsuccessful

35,000 workers working in ASDA’s retail business sought to compare themselves to workers at distribution depots for equal pay purposes. Find out more about this Employment Appeal Tribunal.

View blog

Supreme Court confirms that sleep ins are not working time

The Supreme Court judgment represents the conclusion on whether or not “sleep in time” should be classified as working time, when calculating the National Minimum Wage (NMW).

View blog

Mencap case: No entitlement to National Minimum Wage for sleep-in shifts

In a pivotal and much anticipated judgment for the social care sector, the Supreme Court has ruled that workers are not entitled to the National Minimum Wage for all time spent on a sleep-in shift.

View blog

mailing list sign up



Select which mailings you would like to receive from us.

Sign up