Public Sector Pensions

With a general election looming the CBI have entered the political fray and, quite correctly, pointed out that someone really needs to do something about public sector pensions.

The CBI state that the public sector final salary pension schemes (a burden of around £1 Trillion) are unsustainable and must be overhauled.

The CBI state that public sector pension benefits are now worth an average of 26% of annual salary, this is far beyond the norm in the private sector.

The CBI wants the next government to set up an independent commission to fully investigate pension costs.

All very well.

However, the politicians have a vested interest in retaining the current system, as when they retire they receive a public sector pension.