The National Association of Pension Funds — which represents over 1,000 schemes — told Lord Hutton’s review of public sector pensions that the Government should consider capping pensions for public servants and allow them to ‘top up’ into a defined contribution (DC) pension scheme.
Joanne Segars, chief executive of the association, said: ""While it will reduce the costs of public sector pensions, it will also protect lower paid workers who don’t usually have significant salary spikes late in their careers.
"Career average pensions will also bring employees and employers on a more equal footing when it comes to risk sharing."
Earlier this month HR columnist Will Hutton recommended that the salaries of senior executives in the public sector should remain within a given ratio of other employees.
