Retirement News

Taxpayers 'face £900bn bill' over pensions shortfall

MINISTERS will today be asked to tell the truth about a ballooning bill of nearly a trillion pounds for public sector pensions.

Ministers will be asked to tell the truth about a huge bill of nearly a trillion pounds Ministers will be asked to tell the truth about a huge bill of nearly a trillion pounds

The Confederation of British Industry is to argue that Britain can no longer afford the spiralling £915billion cost of deals for civil servants, police, teachers and other state employees. [>

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It also urges the abolition of retirement at 60 for many on the Government payroll. [>

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The alert comes as a separate study warns that the Royal Mail has a £7billion pension pot deficit. [>

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Both reports will stir anger among private sector staff about having to work harder and for longer to subsidise public sector employees. [>

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CBI deputy director general John Cridland said: “The private sector has had to face up to what its pension commitments will cost and has made huge efforts to put its house in order. All we ask is that the Government does the same.” [>

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The CBI claims recent reforms do not go anywhere near far enough and is proposing a Royal Commission into the looming pension crisis. [>

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Its report also urges increasing the retirement age for many public sector workers who are due to retire at 60. [>

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TUC general secretary Brendan Barber said: “Later retirement ages and risk-sharing have been negotiated by unions across the public sector. This is not always the case in Britain’s gold-plated boardrooms.” [>

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Liberal Democrat spokeswoman Jenny Willott said: “If public sector pensions are to be sustainable in the long term, we must ensure that they are fair and properly funded.” [>

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In the study into postmen’s pensions, former watchdog Ofcom deputy chairman Richard Hooper calls for privatisation of parts of the postal system as “radical surgery” to overhaul Royal Mail.

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Unions fear the proposed changes would mean job cuts. [>

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