The Commons Public Accounts Committee has questioned the validity of Treasury cost projections for public sector scheme changes, saying it did not fully test the impact of its assumptions.
The committee today published a report, using evidence from the Treasury and the Department of Health (DoH), examining the cost of public service pensions and the impact of changes made to public sector pensions in 2007/08. It said the Treasury did not test the impact of assumptions about the rate of growth in GDP, the size of the public service workforce, and the wider impact of the 2007/08 changes on increased payments in means-tested benefits and reduced receipts from taxation and National Insurance. The committee also heard concerns that the discount rate used to set pension contr...
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