Public sector pension reform: Five Qs the govt must answer

1. How much should the taxpayer have to contribute to public sector pensions? Hutton recommended introducing a "fixed cost ceiling" for public sector pensions. This means the amount of employer (i.e. taxpayer) contributions will be fixed, while the employee contribution rate will be floating. If the overall pension costs breach the ceiling, it will automatically trigger an increase in employee contribution rates. Hutton believes this will give certainty to the taxpayer on the future cost of public service pensions. The government has so far been coy about revealing how much the taxp...