Published March 2011
Budget 2011 given on 23 March 2011
The final report of the Hutton enquiry into public sector pensions has been published. Recommendations include:
- Members of current public sector final salary schemes should be moved to career average arrangements for future service.
- Normal pension age in the new schemes should be increased to be in line with State pension age.
- Current members should maintain a final salary link for past service, while accruing benefits on a career average basis in respect of future service.
- Member contribution rates should be set so that members appreciate the value of their pensions. There should be tiered contribution rates for those on different income rates to reduce the burden on lower paid staff.
In the 2011 Budget the Government accepted the Hutton Report's recommendations for the reform of public sector pensions as a basis for consultation. Proposals will be issued in autumn 2011.