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CBI calls for public sector pension reforms

Public sector pensions require reform on a similar scale to those in the private sector to tackle a potential ‘pensions time bomb' according to the Confederation of British industry (CBI).

The CBI have called on the government to set up a independent commission to look at the rising cost of public sector pensions and to make proposals for change.

"The debt that is being racked up is truly eye watering and is set to get much worse," said John Cridland, deputy director-general of the CBI.

Private firms have had to make many difficult decisions regarding pensions, such as increasing employee contributions.

This figure rose to £33bn last year, but pension schemes are still in debt due to the poor performance of global stock markets.

Mr Cridland believes that public sector pensions deficit is around £900bn and he added, "Public sector workers should have a good retirement, but we need to talk openly about how we split the bill."

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Post Date: December 15th, 2008