Danny Alexander MP, Chief Secretary to the Treasury, has given a speech outlining the Government’s proposals for the reform of public sector pensions. This follows publication in March of the final Hutton Report (see Pensions Update, March 2011). It deals only with the key benefit design issues and states that no other changes are proposed. However, it is clear that some of the detail needs to be fleshed out, e.g. whether “We will honour your accrued pensions in full” means maintaining final salary linkage for past service, as recommended by Hutton.
The key points in the announcement are set out in this table.
The Government is consulting with the Unions on the three measures which have not yet been implemented.