Pensions: Many state workers will be better off than private sector

Pensions: Many state workers will be better off than private sector

 

Millions of public sector workers will still be better off than those in the private sector under plans to cut the £1trillion future cost of their ‘gold-plated’ pension schemes, experts said last night.

They dismissed the fury of militant trades unions, who have warned they will cripple Britain with a wave of strikes in response to proposals to reform their retirement deals.

The first co-ordinated action is planned for June in a threatened summer of strife.

A taste of things to come? Trades unions have warned they will cripple Britain with a wave of strikes in response to the proposals

Former Labour work and pensions secretary Lord Hutton, in long-awaited recommendations for the Coalition, said workplace pension ages in the public sector should be linked to the state pension age, due to rise to 68 in the years ahead.

Nurses, doctors, teachers, local government and other public sector employees will have to pay more into their pension pots and retire years later than they had planned.

There was particular anger among police, firefighters and the armed forces, who were told their days of retiring as early as 50 on the basis that their professions are particularly arduous are over. They will have to wait until 60 before their draw their pensions.

Defence officials warned that if the Government went ahead with the proposal to cut the pensions of the armed forces, or to make them serve longer, it would prompt an outcry.