21 August 2008
The Liberal Democrat are pressing the government to introduce an
independent body to review public sector pensions - The Independent
Public Sector Pensions Commission.
Peer Lord Kirkwood tabled an amendment to the Pensions Bill to
this effect. The body would assess the terms and affordability of
public sector pensions and report findings to Parliament. There
have been various estimates of Public Sector pension liabilities
with some putting the figure as high as £1 trillion. Such
liabilities, since the schemes are largely unfunded, are picked up
by the taxpayer.
Shadow Treasury minister Baroness
Noakes said: "It is not sustainable to have gold-plated public
pensions in existence when the private sector largely has defined
contribution. I don't have an immediate solution other than the
issue has to be looked at again."
