Lowering the annual pension contribution allowance to £40,000 could persuade some middle-management public servants to take up career average schemes to avoid harsh tax penalties, pensions expert Tom McPhail says.
Public sector workers will budge no further on pension reforms and will fight recommendations in Lord Hutton's review, unions say.
Lord Hutton has asked government to look at the discount rate used to value public sector pensions as he believes it is too high.
Lord Hutton will pitch collective defined contribution schemes to the department for work and pensions but would not be drawn on whether the model could translate to the private market.
The pensions industry has delivered a positive verdict on Lord John Hutton's interim report on public service provision.
The final salary link in public service pensions is 'inherently unfair' and can lead to high flyers getting almost twice as much back in pensions than those on more modest earnings for the same amount of pension contributions, Lord John Hutton says.
Lord John Hutton is set to publish the interim findings of the independent Public Service Pension Commission's review on Thursday, this week.
Gordon Brown has been accused of attempting to blackmail Tony Blair to drop Adair Turner's revolutionary pension reform proposals.
Lord John Hutton should consider shifting public sector pensions to a career average structure to address the inequalities of final salary provision, local government employers say.
Lord John Hutton's independent public sector pensions commission should consider an LGPS-style framework for all taxpayer funded schemes, a consultant says.