In a new study*, published today by the IEA, Neil Record**, the leading expert on public sector pension deficits, puts the burden of future public sector pensions at £1.025 trillion this estimate is nearly twice as great as the governments own estimates and approximately equal to one years national income. Neil Record argues that government estimates do not take proper account of trends in mortality, likely public sector pay increases and market interest rates.
Each year, the government makes new pension commitments to public sector workers worth over £40billion.
The recent very high level of public sector pay increases has led to a significant rise in the pension debt burden. Neil Record comments, When the government increases nurses pay b