what was once unthinkable is becoming both thinkable and sayable....
chip, chip, chip away....http://money-news.dailyfinance.co.uk/ar ... ons_report
Former Labour minister Lord Hutton said long-term structural reform was needed to public sector pensions, including an end to the current final salary schemes.
He called for a new model of pensions to be introduced that shared the risk more fairly between the Government and workers.
But he ruled out replacing final salary pensions with individual funded defined contribution ones - under which the employee bears all the risk - as has happened in much of the private sector.
Lord Hutton said he would consider a range of alternatives in his final report, including a career average scheme, under which pensions are based on a worker's average pay during their career, rather than their salary immediately before they retire.
Other options include hybrid schemes, which share the risk, and collective or notional defined contribution pensions.
He added that if the Government wanted to make short-term savings, it should raise pension contribution rates for workers.
But he stressed that it should protect the low-paid from the increases and not hike rates for the armed forces at this time.
Lord Hutton was commissioned to carry out the review by Chancellor George Osborne, who warned that the "unsustainable" rise in the annual bill for public sector schemes must be tackled.
Lord Hutton said he did not want to see "good, decent people" facing poverty in retirement, but he stressed that the problem could not be "buried" any longer because of the problems being stored up.