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The government has set out plans to raise the public sector retirement age to 66, in line with the state pension.
Chief secretary to the Treasury Danny Alexander said public sector pensions will be based on workers' average salaries.
The public sector retirement age will be linked to the state pension age of 66, with the exception of the police, army and fire service.
In a speech today at the IPPR, Alexander criticised unions due to strike in protest at pensions changes.
About 750,000 workers including teachers and job centre staff have vowed to stage co-ordinated action on 30 June, as anger over the coalition's spending cuts grows.
The Lib Dem minister called on rank-and-file union members to help "shape" the current reforms now or face "uncompromising" change later.
"It may be that those who oppose this change think that they can force the government to change its mind," he said.
"This head in the sand approach is a colossal mistake.
"This government will reform public service pensions, and this is the time to shape that change not try to block it."
The government is expected to bring in the increases from April next year through to 2014, seeking to save £2.8bn.
The chief secretary to the Treasury acknowledged that the proposed changes will be "painful" and difficult for many people.
But he said the lowest-paid workers will not face any increase in pension contributions, with no contribution increases for those earning under £15,000 and those earning less than £18,000 will have their contributions capped at 1.5 per cent.
Speaking to Radio 4's Today programme, Alexander said: "People in this country are living longer, we're seeing longevity increase by 10 years since the 1970s, and that's predicted to go further in the future.
"That's why we're increasing the state pension age, it will go up to 66 from 2020, and that's why we're recommending there is an increase in pension contributions.
"If we make those changes, alongside changes going on for every other person in this country, then we can protect something which is very important, that people who give their working life in service to the public continue to receive among the very best pensions in retirement."
GMB union national secretary for public services Brian Strutton told Today: "I was convinced that the government was reconsidering its position on (contributions) and thinking it through carefully.
"I'm worried now that they are not. If Danny Alexander is going to say 'Actually, we've made our minds up', then that is a show-stopper."
Unite union assistant general secretary Gail Cartmail said: "It is completely wrong of Danny Alexander to hit the media airwaves to make detailed announcements on the current negotiations. It is tantamount to bombing the talks.
"We have moved in the flash of a media soundbite from tough, detailed negotiations to gunboat diplomacy by the Treasury.
"As a result, millions of public sector workers, many of them women, such as classroom assistants, health visitors and nursery nurses, are in the firing line and face complete uncertainty about their future pension."
Christine Blower, general secretary of the National Union of Teachers said: "Danny Alexander's statement confirms what the NUT has been saying all along. The hovernment is not, and never was, taking our pensions negotiations seriously.
"This is the 'offer' that the government is making to teachers: pay 50 per cent more for your pension, and then when you retire at 68, your pension will be indexed only to the lower CPI measure of inflation.
"In other words, there is no shift at all from the government’s original position – we must pay more, work longer and get less."
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