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16.03.16

Public sector employer pension contributions to rise by over £2bn by 2021

Public sector pensions can only be sustainable if employer contributions rise by over £2bn by 2021, the chancellor announced in today’s Budget.

George Osborne said that the decision had been made following a regular evaluation of the pension discount rate.

The rise will not come into effect until 2019, when it will increase by £1.97bn in 2019-20 and £2bn in 2020-21.

He said: “This will not affect anyone’s pension, and will be affordable within spending plans that are benefitting from the fiscal windfall of lower inflation.”

Osborne also said that public sector pension reforms in the last Parliament will save over £400bn in the long term.

He also announced anti-tax avoidance measures including imposing a new duty on public sector employers to ensure that their employees pay the correct tax.

The government recently completed a consultation on plans to revoke and replace the Local Government Pension Scheme, prompting the Pensions and Lifetime Savings Association to express concern about excess public sector deregulation.

(Image c. PA Wire)

Comments

David Ross   16/03/2016 at 21:46

So where does the extra money come from? It is money that would otherwise be spent on serving the greater good. Instead it is spent on maintaining this immoral pay and pensions apartheid in favour of the government and it's employees. "Societies reflect how they are governed" David Ross" In our case that is corruptly.

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