The Chancellor announced today that John Hutton has accepted his invitation to chair the independent Public Service Pensions Commission.
The commission will undertake a fundamental structural review of public service pension provision including the Local Government Pension Scheme (Scotland) by Budget 2011. It will produce an interim report in September 2010 ahead of the Spending Review.
The commission will make recommendations on how public service pensions can be made sustainable and affordable in the long-term, fair to both the public service workforce and the taxpayer, and ensure that they are consistent with the fiscal challenges ahead.
The Commission will consider issues including:
- The growing disparity between public service and private sector pension provision.
- The need to ensure that future pension provision is fair across the workforce.
- How risk should be shared between the taxpayer and employee.
- Wider Government policy to encourage adequate saving for retirement and longer working lives.
An important given is that existing accrued pension rights will be protected.
In reaching its recommendations, the Commission is to have regard to:
- The needs of public service employers in terms of recruitment and retention.
- Which organisations should have access to public service schemes.
- Implementation and transitional arrangements for any recommendations.