The government will cap the taxpayer's liability for civil service pensions should increases in life expectancy exceed expectations, Pat McFadden, the Cabinet Office minister responsible for the civil service, said yesterday, reports the Financial Times .
Unions and the government have reached broad agreement on a deal which will allow existing civil servants to continue to retire on final salary pensions at 60 but will see recruits on career-average pensions forced to wait until 65. But McFadden said the government also planned to impose a cap on any future increase in taxpayers' liabilities if costs rise beyond what is at present anticipated, says the paper. Initially any extra cost would be split 50:50 with employees, but with an absolute cap which would prevent the employers' contribution rising above 20% of salary from the generous ...
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