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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.’
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Nigel Keogh is the author of The public/private sector pensions divide in the November issue of Public Money and Management magazine.
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Michaela Lavender, Managing Editor: Public Money & Management
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