Michael Johnson’s report, “A Toxic Tangle”, was featured in MoneyMarketing on Monday 4th February.
To view the full article, please visit the MoneyMarketing website
“Influential think-tank the Centre for Policy Studies has warned public service pensions will cost an extra £7.4bn a year as a result of a “toxic tangle” with proposed state pension reforms.
Last month, the Government published a long-awaited white paper detailing plans to introduce a single tier state pension worth £144 a week for future retirees.
The publication of the white paper was delayed twice as policymakers wrestled with the complex issue of contracting-out.
CPS research fellow Michael Johnson says the reforms – which are due to be implemented in April 2017 at the earliest – will load an extra £7.4bn a year onto the cost of public sector pensions.
Around £3.4bn of this comes from the loss of the public sector employers’ National Insurance rebate following the abolition of contracting-out.
The additional £4bn follows the decision to allow contracted-out workers to continue to build up state pension entitlement up to the £144 a week single tier level.
To view the full article, please visit the MoneyMarketing website
Date Added: Monday 4th February 2013
