Break with future salary link will cut public sector scheme liabilities by £70bn

clock

Lord Hutton could slash the cost of pensions already owed to public sector workers by breaking the link with future pay growth, Towers Watson says.

The consultant said Hutton could recommend calculating final salary pensions immediately, rather than when workers reach retirement, and increase the pension pots with inflation rather than pay inc...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Industry

Gallagher acquires First Actuarial for undisclosed amount

Gallagher acquires First Actuarial for undisclosed amount

Pair will have combined ability to serve clients across a range of scheme sizes

Holly Roach
clock 02 December 2025 • 1 min read
News Digest: UK pension funds dump US equities on fears of AI bubble

News Digest: UK pension funds dump US equities on fears of AI bubble

PP brings together all the latest news on pensions from across the national and financial media

Professional Pensions
clock 02 December 2025 • 1 min read
PASA publishes paper outlining implications of Data Act 2025 for schemes

PASA publishes paper outlining implications of Data Act 2025 for schemes

PASA highlights core areas schemes ‘need to understand and act upon’

Holly Roach
clock 01 December 2025 • 2 min read
Trustpilot