The cost to the taxpayer of funding public-sector pensions is expected to reach £9 billion by 2014.
The Government has enlisted former secretary of state for work and pensions Lord (John) Hutton to carry out a review into final-salary pensions across the sector.
But pensions experts have seen the announcement as the beginning of the end of defined- benefit schemes for public-sector staff.
Clive Fathers, partner and head of employment solutions at Grant Thornton, said: I think this will be a gradual transition towards average salary schemes going forward.
While James Biggs, corporate pensions specialist at Lorica Consulting, added: If there is not enough money [this form of] pension will have to come to an end. It is the natural conclusion. Once the Government starts tweaking things, it is obvious in 10 to 15 years everything will have changed to defined-benefit.
