Defined pensions are the real culprits

摘要

While media attention was firmly on Sir Philip Green's BHS pension deal last week, what is still not getting any widespread column inches is how much the proposed defined benefit pensions scheme could cost local government. A green paper was published in February and a consultation is under way into the future viability of the pension scheme lifeboat, but the review must look more broadly at the fiscal threat to both individuals and government agencies arising from the UK cultural expectation of defined benefit pensions in public services. The implications could be catastrophic, with the local government deficit likely to be bigger than any of us are imagining.