24 February 2010
According to Mike Taylor, Chief Executive of the London Pension
Fund Authority (LFPA), several large local authorities are planning
changes to employees pension arrangements to bring them more in
line with the private sector after accepting that the build up of
pension benefits needs to be made more affordable to the
taxpayer.
In an interview with the Financial Times, Mr
Taylor said: "There are serious issues about the balance of cost
between the employee and the taxpayer. Doing nothing is not an
option."
Changes being considered are a move towards a pension based on
average career earnings and a slowdown in the rate at which
retirement benefits build up.
