Public Sector Pension Packages Unaffordable

CFM (UK) Ltd. - News Update: Edi Truell, Boris Johnson’s adviser on pensions and investments, has urged the government to tackle generous public sector retirement packages as the NHS’s pension deficit hits £500m. Mr Truell said that the government must consider raising its annual contributions to its staff pension scheme from £5.7bn to about £32bn a year, equivalent to three quarters of its wage bill, and look at ending unaffordable defined-benefit schemes. Pensions consultant John Ralfe added that public sector pension schemes, such as those of the NHS, teachers, civil servants and the armed forces, are unfunded, and are running on a £10bn shortfall every year.

The Times, Page: 39

Posted on September 22nd 2015

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