Reforming public sector pensions
This Pensions Policy Institute (PPI) has undertaken an independent assessment of the Coalition Government's proposed reforms to the NHS, Teachers, Local Government and Civil Service pension schemes. The PPI concludes that the reforms will reduce the average value of the pension benefit for members of these schemes by more than a third.
Across the four largest public service pension schemes the value of the schemes reduces, on average, from 23% of a scheme member’s salary before the reforms to 15% of a scheme member’s salary after the Coalition Government’s proposed reforms.
More valuable than private sector pensions
Nevertheless, even after the Coalition’s proposed reforms the benefit offered by all four of the largest public service pension schemes remains more valuable, on average, than the pension benefit offered by Defined Contribution (DC) schemes that are now most commonly offered to employees in the private sector, which are typically worth around 10% of a DC scheme member’s salary.
The future of public sector pensions
The latest report follows an earlier project to examine the future of public sector pensions, which was also funded by the Nuffield Foundation. Two reports related to this project are available to download from the publications section of this page.
Chris Curry, Pensions Policy Institute
Grant amounts and duration
1. Where next for public sector pensions?
September 2009 - June 2010
2. Implications of the Government's proposed public sector pension reforms
April 2012 - March 2013
- Pensions modelling and development
- Acting in the Best Interests?
- An ageing workforce: The employer's perspective
- Cognition, financial literacy and the ageing process in Scotland
- Investigating the impact of pension and long-term care reforms
- Does apprenticeship work for adults?
- The impact of the Government's single-tier state pension reform