The combined effect of banning contracting out and accepting Hutton's public sector pension reforms will "stoke the ire" of trade unions, warns Hargreaves Lansdown's Tom McPhail.
George Osborne announced today the government will aim to end contracting state benefits out to final salary schemes as it creates the single tier state pension. The Chancellor added the government accepts Lord Hutton's reforms as a basis for consultation with public service unions, including moving schemes from a final salary to a career average model. However, head of pensions research McPhail warns today's pension announcements, when coupled with reforms already in place for public sector workers, will spark more union action. "The public sector already must pay a 3% increase ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes