Bosses are calling for the reform of public sector pension schemes, with fears that they taxpayer may have to fund an extra £335 billion bail-out over the next 50 years.
The first measure, the Institute of Directors insist, is to extend public sector retirement age. Increasing life expectancy has caused many private sector companies to scale back pension provision . But some 90 per cent of public sector employees remain on defined benefit pension schemes .
The director general of the IoD, Miles Templeman, reportedly commented: "In an ideal world, pensions reform would not be necessary, but an ageing population makes pensions more expensive. The recent reforms to public sector pensions were inadequate and failed to bridge the pensions apartheid. There is no longer any justification for a growing bail-out of generous public sector pensions and further reform is now essential. It is unfair for businesses and families struggling in the downturn to pay higher taxes to fund pensions that they cannot afford for themselves or their employees."
He reportedly continued: "The enormous deficits currently being run intensify the need to reduce long term costs to help bring the public finances back to sustainability."
Bosses call for pension reforms
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Bosses call for pension reforms
Fri, 30 Jan 2009
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