Archive for March 10th, 2011
UK civil servants to work more for less pension
(Daily Mail): Public sector workers were today told they will have to work more than a decade longer to qualify for smaller pensions, under explosive reforms. In a bid to save billions of pounds, early retirement for those working in the public sector will become a thing of the past. The usual retirement age of 60 will be hiked to that of private sector workers – currently 65 and due to rise to 68. And the Armed Forces, policemen and firefighters, who can currently claim full pensions at 50, will have to wait another 10 years before they are eligible. Unions today warned the Government had ‘lit the blue touch paper for strikes’ and said millions could take to the streets to protest about the proposed reforms.
Former Labour Cabinet minister Lord Hutton also recommended that public sector staff, who include NHS workers, teachers and police, should no longer have pensions based on their final salary. The schemes would be swapped for a sum calculated on the average salary earned throughout their career.
The dramatic move is part of a broader shake-up of state employees’ retirement funds, which have created a £1trillion black hole in the public finances.