Taxpayer faces £41billion per year bill for public sector pensions (City AM)

Michael Johnson’s report, “A Toxic Tangle”, was profiled in City AM on Monday 4th February.

To view the full article, please visit City AM

“TAXPAYERS may be hit with a bill of up to £41bn per year to cover the cost of public sector pensions, according to research out today.

This bill would represent £1,600 per family, the Centre for Policy Studies (CPS) said, due to the generosity of the pensions given to state workers.

The total payout would come from £17bn of employer contributions, £15bn to cover the gap between contributions and payouts, and at least £9bn from the end of contracting-out the think-tank said.

There could even be a further £2bn cost from out-of-date life-expectancy modelling the bill’s architects are using, the CPS claimed.

“Lord Hutton claimed that his proposals for public sector pension reform would be fair, sustainable and balanced; and that taxpayers can have confidence that the costs are controlled,” said CPS director Tim Knox.

“Sadly, none of this is true – taken together, the coalition’s pension proposals are unfair and the costs – at £1,600 a year for every household – are clearly not controlled.”

To view the full article, please visit City AM

Date Added: Monday 4th February 2013