Public sector pensions will be capped as part of government plans to pay-off the UK's burgeoning budget deficit.
Chancellor Alistair Darling admitted the measure was part of a host of "difficult but essential choices" the government would take in the aftermath of the recession.
These include increasing contributions for public sector workers earning more than £100,000.
He says: "Public pensions need to be in line with private sector pensions. To this end, we will be looking to cap public sector pensions, saving £1bn a year in the process."
The announcement comes after the department of communities and local government said Local Government Pension Scheme reform could be used to help halve the budget deficit over the next four years (PP Online, December 4).
DCLG local government and firefighters' pensions schemes division branch head Bob Holloway told delegates at the Local Authority Pension Fund Forum conference in Bournemouth last week they should not be "averse to change" when it came to the structure of LGPS.
And, while he rejected suggestions the scheme was "gold-plated', he said the LGPS needed to "adapt and change" in order to survive in the current climate.
More to follow...
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