23.06.11
Hutton warns against pension plans
Lord Hutton is set to give a speech today that will warn the Government about the dangers of their plans for pension reform.
The Labour peer will assert that members of the local government pension scheme may have no alternative but to leave if the contribution levels are raised too high with no other forms of compensation.
Since life expectancy is increasing, it is necessary to apply change to the current pension system. Yet according to the Guardian, Lord Hutton will suggest discussion of alternative measures to minimise the risks of a ‘mass exodus’ from the scheme.
He will say: “If these reforms have any chance of succeeding then people need to know that they are being treated fairly.
“There should be full and proper consultation and discussion with the trade unions. We must try and avoid the confrontation and division that marked previous decades and must not turn the clock back."
The Prime Minister’s spokesperson has stated that he wants to be fair to taxpayers whilst protecting public sector pensions in order to avoid strikes.
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