TISA response to Hutton Report
In response to today’s publication of Lord Hutton’s final report on the future of public service pensions, TISA Director of Policy Malcolm Small said:
“TISA broadly welcomes the recommendations of the Hutton Report. We all need to work for longer and contribute more to our pensions if we are going to stand any chance of a reasonable income in a retirement which, for many, will be over 25 years now and in future. The public sector is not immune from this; especially as so many of the pension promises made to them are supported by the tax payer. Hutton’s recommendations are well thought through, proportionate and balanced across the interests of all parties.
“However, whilst future tax payer liabilities will be reduced and contained by the recommendations, they will remain substantial. Although an end to final salary pensions is recommended, with ‘career average’ salary becoming the accrual basis instead, the fact remains that public sector workers will still have a Defined Benefit core pension architecture. This architecture is heading rapidly to extinction in the private sector as unaffordable and unsustainable. Leaving it in place in the public sector simply locks in a social divide between the private and public sectors. The private sector is moving rapidly to Defined Contribution (DC) pensions and the new National Employment Savings Trust will operate on this basis when auto-enrolment into pension saving starts in 2012. If DC is considered to be good enough for the rest of us, why is it not good enough for the public sector?”
Ends……
For further information, please contact:Malcolm Small, Director of Policy, Mobile: 07989 500771 Email:malcolm.small@tisa.uk.com
Issued on behalf of TISA by Cauldron Consulting, contact Steve Radford – Tel: 020 3178 7238, Mobile: 07889 903786 Email: steve.radford@cauldron-consulting.com
Notes for Editors
The Tax Incentivised Savings Association (TISA)
TISA is the premier industry funded body in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available whilst encouraging more people to save for their financial security and peace of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace through its membership comprising over 120 member firms involved in the supply or distribution of products. TISA’s remit extends across the broad spectrum of government sponsored savings and investment vehicles.