An assessment of the Government's reforms to public sector pensions
The public sector employers and unions have been discussing reform proposals to all major public sector pension schemes since 2002. The implementation of the final set of reforms has once again focused attention on the public sector pension schemes. This report analyses the impact of the Government’s public sector pension reforms for public sector employees, for the sustainability of the public sector schemes and for the comparison between pay and pensions in the public and private sectors.
The research was funded by the Nuffield Foundation but the views expressed are those of the authors rather than of the Foundation.
Chapter one introduces the main features of the public sector pension schemes and why the reforms are taking place.
Chapter two considers how well the reforms have increased the flexibility and attractiveness of the schemes to public sector employees and employers.
Chapter three considers the costs of the schemes to the taxpayer, after the amount contributed by members of the schemes has been deducted. It also considers the new cost sharing and cost capping agreements, which aim to share unanticipated future changes in costs between the members of the public sector pension schemes and the taxpayer.
Chapter four considers whether this is the case by comparing the reformed public sector pension schemes with hypothetical private sector pension schemes.
Chapter five looks at whether the assumptions that good public sector pension schemes are part of a wider remuneration package are true.
To download the report, please click here.
To download the executive summary, please click here.
To download the press release, please click here.
To download a write up of the launch event, please click here.
To download the presentation from the event, please click here.
Keywords: public sector, pension, reforms, pay, Nuffield Foundation, government, private, public, flexibility, remuneration, sustainability, NPA, normal pension age, NHS, Civil service, teachers, public sector pension schemes, local government, armed forces, policy, fire, defined benefit, db, defined contribution, dc