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Employers unveil public sector pension reform proposals

An influential employer lobby group has told the Government it can save £900m a year from public sector pensions without raising employee contributions for two years, according to the BBC.

A letter from the Local Government Employers to Communities Secretary Eric Pickles, seen by the BBC, says workers could either pay more into the Local Government Pension Scheme from 2013 or pay what they do now and receive less when they retire.

The LGE has reportedly put forward a proposal which would see the normal pension age increase from 65 to 66 from April 2014, which it claims would save £300m a year.

The remaining £600m would come from an increase in contribution rates in two years time. Under the plans employees who are not willing or able to contribute more would have the option of accepting a cut in pension benefits.

Trade unions representing public sector staff are preparing to ballot members on a nationwide “day of action” due to concerns the Government will hike workers’ pension contributions next April.



Tom Baigrie: The dangers of consolidation

Robert Reid recently wrote in these pages of the increasing likelihood of consumer detriment as a side-effect of the consolidation among life insurers. I am not sure the FSA is alert to it yet but I believe the Financial Ombudsman Service’s caseload caused by this issue is growing. The way these things tend to happen […]


Fay Goddard: Welcome to the new world

September is the busiest month of this year for both the Personal Finance Society and me personally. The month kicked off with the first of five autumn roadshows, where myself and some of the PFS team are talking to members and non-members about how we operate, what we are doing now and what the future […]


FSA cracks down on tweets

The FSA is taking a hard line on financial services firms advertising products on Twitter. Money Marketing’s sister publication Mortgage Strategy reports the regulator has told a number of brokers and distributors to amend or remove tweets on the social networking website. Money Marketing understands the regulator’s concerns extend to other areas of financial services. […]


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