PPI calls for retirement calculator 'reforms'

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PPI calls for retirement calculator 'reforms'

Wed 24th Nov 2010

A series of reforms to the pensions system has been called for by the Pension Policy Institute (PPI), including the introduction of a career average scheme for public sector workers.

Niki Cleal, director of the institution, made her comments after the organisation published a report entitled The Future of Public Sector Pensions, which was funded by the Nuffield Foundation.

She lauded the proposals included in the document and concluded that the government is going to need to balance the costs and risks of such retirement policies between the taxpayer and the employees themselves.

Ms Cleal suggested one way to improve the system would be to use a career average scheme, but with higher levels of member contributions than in the current civil service arrangement.

"A career average scheme may remove the inequalities that exist in final salary schemes that benefit high fliers and penalise those who leave the scheme early," she explained.

Last month, the PPI noted that the pensions offered by the government must be good enough to attract a high calibre workforce.

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