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Briefing Notes

Briefing Note 25 - Public sector pension reform: what happened?

The Government and public sector unions agreed ‘framework principles’ for the reform of the biggest public sector pension schemes in October 2005. Commentary suggested that tax bills would rise as a result and that the agreement would make it more difficult to extend working lives more generally.

This Briefing Note examines what was agreed and what it means. There should be no higher cost to be funded by higher tax. But the communication has not helped Government signalling on later working, and confusion between “pension age” and “retirement age” still bedevils the debate. 

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