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Public sector pension reforms 'make no saving'

Tuesday 31 January 2012 01:00 GMT
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The reform of public-sector pensions will make "little or no difference" to the amount they cost the state, an analysis by the Institute for Fiscal Studies has concluded.

Public-sector workers will still be better off in retirement and receive higher wages than those in the private sector, says the IFS.

The research found savings from higher pension ages were, on average, offset by other elements of the pensions becoming more generous.

Carl Emmerson, deputy director of the IFS and co-author of the paper, said "the consequence of the long-drawn-out negotiations over the latest reform appears to be little or no long-term saving to the taxpayer or reduction in generosity, on average, of pensions for public-service workers".

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