“Michael Johnson, a research fellow at the Centre for Policy Studies, the UK think-tank, believes the measures will not deliver the much-needed improvements in infrastructure spending.
“What we are witnessing is mere tinkering, masking the fundamental truth that the LGPS is not sustainable,” he said.
Mr Johnson called for the government to scrap the current system of gilt-edged defined benefit final salary pensions for local authority employees by 2018 and to replace this with a new defined contribution retirement offering.
“If the LGPS is to have a long-term future, its DB status will have to cease,” he said.
Moving to a DC scheme would allow the existing DB assets of the 89 English and Welsh LGPS members to be fully pooled into a few new British wealth funds.”
To read the full article, visit the Financial Times website.
Date Added: Monday 11th January 2016