Employers group also wants state employees to retire at 65
15 December 2008
The CBI has called for an inquiry into the cost of public-sector pensions, which are “running up a trillion-pound tab”.
The employers group has asked the government to set up an independent commission to examine the financial rules, costs and levels of taxpayer subsidy that underpin public-sector pensions. It estimates that public-sector pension schemes have liabilities of more than £915 billion.
The CBI also called for the working lives of state employees to be extended to age 65, in line with private-sector retirement and the state pension. The numbers eligible for a public-sector pension are growing and, although reforms were made in 2006, most of these workers can retire at 60 or earlier, and also benefit from full inflation proofing and job transfer protection. By contrast, the private sector has seen “difficult and painful reforms” to its pension schemes, increasing both employee and employer contributions, the lobby group said.
Deputy director-general John Cridland said: “Public-sector workers should have a good retirement, but we need to talk openly about how we split the bill. The debt that is being racked up is truly eye watering and is set to get much worse.
“An independent commission would shine a light on the real cost of public-sector pensions and could help lighten the load for taxpayers.”