Pensions experts have spoken out in support of Lord Hutton's key proposals to reform public sector pensions.
These include reducing payouts, increasing contributions and moving away from final salary structures.
Many say the current system is unfair to lower-paid workers and unaffordable while Hutton's proposals are fair and realistic.
Main industry responses so far:
Laith Khalaf, pensions analyst at Hargreaves Lansdown: "The axe has been left in the toolshed. Lord Hutton's proposals will maintain generous pension provision for public sector workers and at the same time will create a more honest framework for costing these schemes."
Joanne Segars, chief executive of NAPF: "Lord Hutton has heeded our warnings about not placing too much of the burden on the low paid, recognising the risk that many may opt out of pensions altogether. All workers deserve a good workplace pension, whether private or public sector."
Mike Smedley, pensions partner at KPMG in the UK: "The report rules out cutting benefits as far as the private sector or moving to a DC model, and whilst the public sector may end up with lower pensions, it appears they will still have more than the private sector in the form of a guaranteed level of benefits."
An Aegon spokesperson: "Reform of public sector pensions has a direct connection to pensions reform more widely. Unless we succeed in getting employers and employees to contribute at higher than the minimum rates, pensions reform will not succeed fully in its aims. The public sector has an important role to play in setting high standards for employer provision of pensions and workplace benefits."
ACA chairman Stuart Southall: "This report is careful in ‘passing the buck' to the Government in deciding on any short-term policy changes and on the future of the Fair Deal which covers pensions in outsourcing arrangements. That said the framework for longer-term structural reform looks sensible in its recognition of the need for risk sharing approaches to be considered."
John Wright, head of public sector at Hymans Robertson: "We acknowledge the impact this will have on public workers who are already suffering financially, but increasing contributions by an extra 2% would raise just under £1.5 billion if applied to salaries in excess of £25,000 across the public sector, which would go some way to plugging the current liabilities but additional long term measures are likely to be needed."
Niki Cleal, director of the Pensions Policy Institute: "PPI analysis confirms final salary schemes tend to favour high fliers with fast salary growth at the expense of workers with slower salary growth. Alternative models of pensions that are based on average salaries or which share risks in other ways, tend to produce less diverse outcomes between high and low fliers in the same pension scheme."
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