Pensions

Public sector and private sector pensions | Comment

 The Times

Sir, Paul Johnson’s analysis of public sector pensions (“Pensions are the real public sector pay scandal”, Comment, Sep 1) is spot on. Defined benefit pensions, in which there is a set payment on retirement, are virtually closed in the private sector but are flourishing in the public sector.

The coalition government’s supposed reforms did nothing to bridge the gulf between public sector defined benefit pensions and private sector defined contribution pensions or reduce the annual cost to taxpayers. The government should reduce the generosity of public sector defined benefit pensions, including those for MPs and mandarins, and only offer them on the first £30,000 of salary, with defined contribution pensions on any pay above this.

This genuine reform would start to bring public sector pensions…

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