Sir Humphrey's Legacy: facing up to the cost of public sector pensions

Neil Record calculates the burden of public sector pensions and offers a policy solution.

Whilst private sector pension schemes have been closing down rapidly in the last few years, public sector employees continue to enjoy “gold plated” benefits. In addition, rates of ill health retirement in public sector pension schemes are extremely high. Proposed reforms to public sector schemes will make little difference to the benefits available to new employees and no difference at all to benefits of existing employees.

Private sector taxpayers have to meet the cost of public sector pensions, so how has this divide between the standard of private and public sector pensio