Public sector pensions must be moved from final salary to career average arrangements to become sustainable, the National Association of Pension Funds (NAPF) says.
It also calls for the government to cap pension payouts for high earning public servants, and to allow public sector workers to top up their pensions with an additional defined contribution (DC) scheme if they wish to save more. The proposals form part of NAPF's submission to the consultation on public sector pension reform. "Career average pensions are the most promising option for providing a sustainable, affordable and fairer public sector pensions system," says Joanne Segars, chief executive of NAPF. "While it will reduce the costs of public sector pensions, it will also prot...
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