TUC criticises public sector pensions review

Public sector workers will be ”angered” by the recommendations put forward by Lord Hutton’s review into public sector pensions, the TUC has warned.

Public sector workers will be ”angered” by the recommendations put forward by Lord Hutton’s review into public sector pensions, the TUC has warned.
The former Labour works and pensions secretary, who has been tasked by the coalition Government to head a review into public sector pensions, warned the status quo was ”untenable”.
He said the short-term way to make pensions more affordable is to raise contribution rates.
But TUC general secretary Brendan Barber said: ”Public servants will be angered by the review’s call to pay more for less generous pensions.
”Public sector workers are already facing job cuts, a pay freeze and increased workloads as they are expected to do more with less.  They have already had the value of their pensions cut by the switch to CPI indexing, which will slice a little off their pension every year.”
He warned workers being asked to pay immediate increased contributions were effectively being handed a ”significant pay cut”.
”But the precise details of what will happen are as yet far from clear, and on important issues John Hutton has firmly pushed the ball back into the Government’s court,” he said.  ”These should be negotiated with unions rather than imposed from above.”

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