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PUBLIC sector pensions are twice as valuable as previously thought and a lack of transparency over their true costs has delayed reform, according to a new report published by the Public Sector Pensions Commission.
The Commission found that the use of artificially high discount rates to report unfunded liabilities and calculate contribution rates appeared to lower the reported cost of provision.
It called for greater transparency of costs and its recommendations included a move to a reformed defined benefit pension scheme and raising employee contribution rates.
The Institute of Economic Affairs’ Mark Littlewood said: “It underlines the urgent need for the government to take action. The appalling lack of transparency in public sector pensions has exacerbated this crisis.”