CBI calls for examination of cost of public sector-pensions

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The Government must come clean about the spiralling cost of public-sector pensions by launching an independent commission to examine public-sector pension finances, according to the CBI.

The organisation has called for "much needed reform" of public-sector pensions, which have no pensions pots like the private sector, and recommends the working lives of public-sector employees should be extended past 65 in line with the private-sector retirement age.

The private sector has been forced in recent years to remove defined-benefit pensions such as the final-salary schemes common in the public sector, replacing them with defined-contribution schemes incorporating increased employee contributions.

It is estimated the liabilities for public-sector pensions stand at £915 billion.

John Cridland, CBI deputy director-general, said: "Public-sector workers should have a good retirement, but we need to talk openly about how we split the bill. The debt being racked up is truly eye-watering and is set to get much worse.

"Taxpayers who are struggling to build their own personal pension will be lumbered for decades by the cost of covering public-sector workers who retire years earlier on risk-free pensions."

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Helen Giles, executive director of HR, St Mungo’s Broadway

Helen Giles is executive director of HR for homelessness charity St Mungo’s Broadway and managing director of Real People, a social enterprise HR consultancy. She has been on the HR Most Influential list since is started and is voted on one of the HR Most Influential Practitioners of the Decade. Giles was awarded an MBE in 2008 for her services to homeless people.

Practitioners of the Decade Practitioners by sector Practitioners 2015  by HR magazine
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