PAC on pension costs - parliamentary committee report shows public sector pensions are affordable

26 May 2011

Public sector pension cost will stay around 1% of GDP and that is fair to public sector workers and taxpayers says GMB

GMB commented on today's report on the impact of the 2007-08 changes to public service pensions from the House of Commons Public Accounts Committee. (See notes to editors for copy of press release from the Committee)

Brian Strutton, GMB National Secretary for Public Services said "GMB agrees with the Public Accounts Committee that the forecast for the existing reforms shows that these are sufficient to manage the taxpayer cost over the long term. The report demonstrates that reforms to public sector pensions agreed under the last government would achieve substantial savings for the taxpayer if allowed to proceed.

The tragedy for taxpayers, pension savers and future generations is that the current government is seeking to impose new schemes on the public sector that workers can't afford and won't produce enough pension to pay one energy bill let alone buy food.

In the meantime they have stopped previously agreed reforms which has already meant that £1bn of savings has been lost.

In fact the savings forecast by the PAC (£67bn over the next 50 years) are an underestimate because they only cover 3 schemes. The total is closer to £100bn.

Government needs to recognise that the existing cost framework is adequate for the affordable delivery of public sector pensions and should work with unions to deliver scheme specific reform packages within the long term cost envelope that the PAC has approved. Public sector pension cost will stay around 1% of GDP and that is fair to public sector workers and taxpayers."

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