Independent Public Service Pensions Commission
Final Report
Description:... Lord Hutton of Furness has published his final report on public service pension provision in which he set out his recommendations To The Government on pension arrangements that are sustainable and affordable in the long term, fair to both the public service workforce And The taxpayer and consistent with the fiscal challenges ahead, while protecting accrued rights. The interim report found that the current public service pensions structure has been unable to respond flexibly to workforce and demographic changes which has led to: rising value of benefits due to increasing longevity; unequal treatment of members within the same profession; unfair sharing of costs between the employee, The employer and taxpayers and barriers to increasing the range of providers of public services. Lord Hutton has set out 27 recommendations, including: that an employee's pension entitlement should be linked to their career average earnings; that existing members be moved To The new scheme but accrued rights be protected for pensions built up to date, maintaining the final salary link to past service; that the Government should increase the normal member's pension age in the new schemes so they are in line with state pension ages; that uniformed services should have normal pension ages of 60; that members contributions be tiered according to their earnings with lower contribution rates for people on lower incomes.
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