Unfunded public sector pensions will see contributions from employers increase at the end of this parliament according to the Chancellor's Budget.
George Osborne said today he wanted to keep public pensions sustainable and that changes in the last parliament are expected to save £400bn in the long run.
According to government documentation the discount rate is being set at 2.8% above the consumer price index (CPI) and employers will pay higher contributions to the schemes from 2019-20 as a result.
While the increase was welcomed, there were questions about how it would be sustained in the long run.
Irwin Mitchell partner and pensions specialist Penny Cogher said: "Increasing public sector employer contributions is to be welcomed, as it is at least some recognition by the government of the real cost of providing gold plated public pensions."
The government reviews the discount rate used to set employer contributions to unfunded public sector schemes every five years.
Cogher added: "They [the government] seem to be suggesting there needs to be more of a connection between the contribution rates the employers are paying and the cost of the pensions benefit provision. It is unusual. I cannot think of a Budget where this has happened in this particular way."
Fellow partner and pensions expert Martin Jenkins added: "Public sector employers have to pay more for their staff pensions. Is this not Peter robing Paul? If public sector bodies face higher internal costs they will have less money to provide public services."
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