Public sector pensions cut

first_imgThursday 7 October 2010 9:46 pm whatsapp More From Our Partners Fans call out hypocrisy as Tebow returns to NFL while Kaepernick is still outthegrio.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgPorsha Williams engaged to ex-husband of ‘RHOA’ co-star Falynn Guobadiathegrio.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgColin Kaepernick to publish book on abolishing the policethegrio.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little whatsapp Share MILLIONS of public sector workers will have to contribute more to their pensions, if proposals put forward by Lord Hutton are adopted by the government. The former Labour work and pensions secretary, who is leading a commission into public sector pensions, also said that employees in the public sector would likely have to work longer and switch from final salary schemes to ones that are calculated using average earnings over a worker’s entire career.Hutton said: “The final salary link in public service pensions can lead to high flyers getting almost twice as much back in pensions than those on more modest earnings for the same amount of pension contributions.”He said the gap between employee and employer contributions and the value of pensions paid out by the state, currently £4bn, would more than double in size to £10bn by 2015, largely due to longer lives. Pension payouts from five leading public sector pension schemes have increased by around a third in the last decade, Hutton said. A one per cent increase in contributions would equate to a £1bn saving for the government, suggesting a hefty hike in the amount employees must put into their pension pot in future years. Hutton, who latterly served as defence secretary under Gordon Brown, recommended that the armed forces should be spared from any increase. He also warned against a rise in contributions for the very low paid, who could drop out of pension saving altogether and cost the state more in the long run. But Hutton said it would be wrong to switch public sector workers to defined contribution schemes, which are the norm in the private sector, and warned against a “race to the bottom” in the British pensions system. center_img KCS-content Public sector pensions cut Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryUndoTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailUndoSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesUndoBrake For ItThe Most Worthless Cars Ever MadeBrake For ItUndoBetterBe20 Stunning Female AthletesBetterBeUndomoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comUndoMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesUndoElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldUndo Show Comments ▼ Tags: NULLlast_img read more