IoD response to Hutton review into public sector pensions

Dated: 10 March 2011

Commenting on Lord Hutton’s recommendations for public sector pensions, Miles Templeman, Director General of the Institute of Directors, said:

“We welcome Lord Hutton’s report and his proposals for reforming public sector pensions. His suggestion that the public sector moves away from final salary schemes to a career average basis is a step in the right direction. It is time for the public sector to face up to the sort of changes we have seen affecting private sector pension schemes, particularly in relation to renegotiation of existing obligations. Renegotiation has happened in the private sector and there is no reason why it shouldn’t happen in the public sector.”

“The key now is that the Government is radical and gets on with creating public sector pension schemes that are genuinely sustainable in the long run. Against the backdrop of an ageing population and the current crisis in public finances, taxpayers can’t be expected to fund public sector pension schemes that are typically worth 40 per cent of salary.

ENDS

Contact Points

Edwin Morgan
Media Relations Manager
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
Tel: +44 (0)20 7451 3392
Mob: +44 (0)7814 386 243
Email: edwin.morgan@iod.com
Website: www.iod.com/policy

Notes to editors

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