CBI calls for public sector pensions overhaul

The Confederation of British Industry (CBI) has called for changes to be made to the current public sector pensions model.

New research produced by the body has revealed a need to switch to a more affordable alternative in an effort to limit a ’£1 trillion burden’ that will affect taxpayers.

Its ’Getting a grip: the route to reform of public sector pensions’ report was released yesterday (April 6th) and, the CBI said the next government needs to form an independent commission to investigate the issue ’within weeks of taking office’.

The main focus should be drawing up a new, more sustainable approach that helps to reduce the £1 trillion liability for public sector schemes - which equates to £40,400 for every household in the UK.

According to the CBI, public sector pensions are worth an average of 26 per cent of a salary every year, a figure that is ’far higher’ than their private sector counterparts.

It has also issued 12 priorities that need to be tackled by the new administration, which include developing a strong banking system.ADNFCR-2318-ID-19707629-ADNFCR