At a glance: Pensions review

Image caption Teachers are among those whose pensions have been reviewed

Nurses, teachers, local government staff and other public sector workers should pay more into their pension pots, a major review has suggested.

Lord Hutton has published his initial findings in a review of how to cut the rising cost of public sector pension schemes.

Here are the key points from the interim report:

  • There are 12 million people - one in five of the UK population - who are active, deferred, or pensioner members of public sector schemes
  • The life expectancy of a 60-year-old is 28 years, compared with 18 years in the early 1970s
  • About 85% of public sector employees have some form of employer-sponsored pension compared with about 35% in the private sector
  • In the 10 years from 1999-2009, the value of benefits paid from the five largest public service pension schemes increased by 32%
  • To start covering the increased cost, public sector workers should pay bigger contributions into a pension scheme - although the exact amount is a decision for Parliament
  • Final-salary schemes mean high-flyers get almost twice as much back in pensions than those on more modest earnings for the same amount of pension contributions
  • In the long-term, pensions should be changed from final-salary, possibly to career average
  • Public sector workers should work longer, as life expectancy increases
  • The Dutch and Swedish systems should be considered as models
  • Some changes that have already been made are drastically reducing long-term costs
  • Many schemes have already put up the pension age for new recruits from 60 to 65
  • The average public sector pension in payment is £7,800 a year

More on this story

Related Internet links

The BBC is not responsible for the content of external Internet sites