TUC notes sustainability of public sector pensions

The Trades Union Congress (TUC) has commented on the apparent sustainability of pensions within the public sector.

A National Audit Office (NAO) report indicates that growth in the nation's gross domestic product (GDP) will counteract increases in public sector pension costs in the next five decades.

By 2059-60, public sector pensions are expected to account for 1.7% of GDP, a decline from the 1.9% peak predicted for 2018-34.

In response, the TUC notes that the figures indicate that the UK's public sector's pension liabilities should remain manageable over the coming years.

General Secretary Brendan Barber stated: "Today's report shows that public sector pensions are affordable, sustainable and far from gold-plated."

He added that UK pensions are most problematic in the private sector as "employers are no longer providing pensions to almost two-thirds of their staff".

Figures published in the NAO report show that 2.5% of NHS pensions pay out more than £40,000 a year, along with 1.8% of civil servants' and 0.2% of teachers' pensions.

Posted by David Shuker.