Hutton report on public sector pensions – final date set
The Treasury has confirmed Lord Hutton will publish the final report of the Independent Public Services Pensions Commission on Thursday 10 March.
The report will lay out Hutton’s recommendations to government on “sustainable and affordable” pension arrangements, the Treasury said.
There is some talk about the relaxation of the rules on pension promises when employees are transferred out of the public sector. This is known as the “Fair Deal” regulations. If the combined political aim of The Big Society and Public Sector Deficit Reduction are to stand any chance of success these regulations need to be reviewed.
Those in the private and third sectors are not in a position to fund final salary benefit promises for employees who are transferred to them. Without some relaxation there will be less interest from organisations that the government needs to run these services in the future.
If, as rumoured, trades union pressure has led to the postponement of an increase in member contributions this will be disappointing. There clearly is a need to address the sustainability of public sector pension promises. In the last week the CWU union brokered a deal at O2 where employees voted to increase their contributions from 6% to 10% of salary in order to keep a final salary scheme. If it’s possible in the private sector surely the public sector should follow suit.
It looks like it’ll be an interesting week next week. Watch this space!