CBI urges review of spiralling cost of pension schemes

today called on the government to bring in experts to review the spiralling cost
of Britain’s public sector pension schemes, which it says is rising towards an
‘eye-watering’ £1tn.

This follows demands last week from David Cameron, Conservative leader, for
cuts in public sector pensions, saying a Tory government would make it a
priority to bring public sector schemes in line with cheaper arrangements in the
private sector, The Guardian reports.

CBI said it wanted independent experts to assess the ‘true costs’ of
guarantees offered to public sector workers before a younger generation of
workers were landed with a huge bill.

‘The debt that is being racked up is truly eye watering and is set to get
much worse.Taxpayers who are struggling to build their own personal pension will
be lumbered for decades by the cost of covering public sector workers who retire
years earlier on risk-free pensions,’ John Cridland, CBI deputy director
general, said.

Further reading:

Not an option: How changes to the Pensions Bill will
affect private schemes

The Guardian story

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