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Tackling 'pensions divide' between private and public sectors

Members of public sector pension schemes should pay higher contributions, says an independent commission led by Lord Hutton.

The change is an initial recommendation from the commission, which was set up to consider ways to cut the rising cost of public sector pension schemes.

Lord Hutton said the pensions should be changed from a final-salary basis, possibly to career-average schemes.

Razia Iqbal looks at the 'pensions divide' that some see between private and public sector pension schemes.

  • 07 Oct 2010