Private pensions 'are no model for the public sector'

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Private pensions 'are no model for the public sector'

Thu 24th Nov 2011

The public sector should not take a lead from pension offerings in private industry, as the two areas are incompatible and it would lead to significant reductions for many, while feathering the nests of already top earners.

A report published today (November 24th) by the TUC has revealed to implement a private-style pension scheme, two out of three public sector workers would have to give up their pensions in order to provide for management retirement provisions.

TUC general secretary Brendan Barber said: "Pensions in the private sector are deeply unfair and making public sector pensions more like private sector provision has nothing to do with fairness."

He added that calls for this type of reform are nothing more than "a long campaign by those on the small-state right to cut public services".

In addition, research from MGM Advantage recently showed that almost three quarters (72 per cent) of over-55s in the UK are failing to achieve as high an annuity as they could as they are not taking their health into account when securing pension rights.

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