Pension report higher contributions a good start, but not nearly enough

Peter Tompkins and Prof. Philip Booth comment on Lord Hutton's interim report

Following the publication of Lord Hutton’s interim report, members of the Public Sector Pensions Commission – which reported in July 2010 – welcomed many of the initial proposals but stressed the greater importance of putting pensions on the right footing for the long term.

Peter Tompkins, who chaired the earlier investigation set up by the Institute of Economic Affairs, the Institute of Directors and others, said:

“With the value of public sector workers’ pensions often pushing towards 40% of their salaries, employees need to realise that larger contributions are entirely necessary. I welcome the Commission’s focus on looking at a way of paying benefits that better reflects average salaries for workers' full lifetimes. This is likely to be a