Lord Hutton and Public Sector Pensions
Lord Hutton’s interim report is welcome, but may cause anxiety among public sector workers. This is hardly to be wondered at since they have all been living in a fantasy world, which many, but not the majority, helped to create.
There can be no future system which is based on final salary and it must be met from contributions from the stakeholders and not the taxpayers, who will have their hands full paying off the national debt for at least a generation. Final salary is ridiculous and, once again, favours the few at the expense of the many. Average salary is fair. I heard that in Sweden which took ten years to sort its own pension crisis, over 20% of earnings have now to be applied to pension contributions. This shows what has to be done.
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