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

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

Parental bereavement leave and pay

Draft Regulations has now been published in respect of ‘Jack’s Law’, giving bereaved employed parents and those with parental responsibility the right to two weeks’ leave following the death of a child under 18 (including stillbirths after 24 weeks of pregnancy).

View blog

EHRC harassment guidance

The Equality and Human Rights Commission has issued technical guidance this month on Sexual harassment and harassment at work.

View blog

Ahmed v BBC – the BBC pay a high price for equal pay

In the latest of the ongoing equal pay controversies within the BBC, the Employment Tribunal has handed down its judgment in Samira Ahmed case in a decision expected to cost the BBC in the region of £700,000 in back pay.

View blog

Compulsory retirement age still hitting the headlines

Professor Ewart has succeeded in his age discrimination claim against Oxford University after reaching its compulsory retirement age of 68.

View blog

Andy Hopkin

Andrew Hopkin

Partner

mailing list sign up



Select which mailings you would like to receive from us.

Sign up