Budget 2011: McPhail warns on civil servant pension reform

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 in...