CIPFA warns of reduction in pension saving across public sector following Hutton

07-10-2010

In response to the interim report of the independent review on pensions by Lord Hutton, published today, Nigel Keogh, Pensions Adviser at the Chartered Institute of Public Finance and Accountancy (CIPFA) said:

‘This interim report is very much in line with expectations. The immediate challenge for government now lies in deciding whether to implement the short term recommendation that employee pension contributions should rise. This comes against a background of public sector pay restraint, pensions tax changes and decreases in disposable incomes. The fear is that increasing contributions may result in a significant reduction in pensions saving across the public sector, particularly amongst the lower paid.’

Ends

Contact: Guy Roberts / Lindsay Machin / Chloe Forbes

CIPFA Press Office
t 020 7543 5712/5645/5787
e guy.roberts@cipfa.org.uk/ lindsay.machin@cipfa.org.uk / chloe.forbes@cipfa.org.uk

Notes to Editors:

Nigel Keogh is the author of The public/private sector pensions divide in the November issue of Public Money and Management magazine.

For further information, please contact:
Michaela Lavender, Managing Editor: Public Money & Management
Email: michaela.lavender@cipfa.org.uk http://www.cipfa.org.uk/pt/pmm/editors.cfm

About CIPFA

CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world’s only professional accountancy body to specialise in public services, CIPFA’s portfolio of qualifications are the foundation for a career in public finance. They include the benchmark professional qualification for public sector accountants as well as a postgraduate diploma for people already working in leadership positions. They are taught by our in-house CIPFA Education and Training Centre as well as other places of learning around the world. We also champion high performance in public services, translating our experience and insight into clear advice and practical services. They include information and guidance, courses and conferences, property and asset management solutions, consultancy and interim people for a range of public sector clients. Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services.