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green light for public sector pensions reform?

28 June 2011

The government has recently announced specific proposals regarding the public sector pensions’ arena.

Danny Alexander confirmed in a speech on 16th June that the government’s proposals for members of public sector pension schemes at present comprise an increase in member contributions, an increase in members’ normal retirement ages and a career average structure for public sector schemes going forwards.

Although Alexander’s speech is consistent with some of Hutton’s 27 recommendations in his final report published earlier this year, it does not seem to be consistent with the government’s announcement in this year’s budget which confirmed that although the government endorsed Hutton’s recommendations there would be a period of consultation in order to establish how Hutton’s proposals would be implemented.

It seems, for the moment, that we are still waiting for the flesh to be put on the bones of Hutton’s recommendations.

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