The National Association of Pension Funds (NAPF) commented ahead of Danny Alexander's IPPR speech on public sector pensions today (Friday).
Joanne Segars, NAPF Chief Executive, said:
"It was clear that the Government needed to do something to limit the impact of increased contributions.
"These proposals spare the low paid and the phased rises make sense. There was a real risk that the poorest would be priced out of their pension.
"But even with these changes there is still a real threat that too many average earners will quit their pension, especially at a time of flat wages and tight household budgets.
"Lord Hutton has dispelled the myth that public sector pensions are gold-plated. All workers, whether public or private sector, should have the opportunity of retiring with a good pension.
"Moving to career average and increasing retirement ages will help put public sector pensions on a sustainable footing, while protecting the low paid."
*The NAPF has four million public sector pension holders among its member pension schemes.
Notes to Editors:
The NAPF is the leading voice of workplace pensions in the UK. It speaks for 1,200 pension schemes with some 15 million members and assets of around £800 billion. Its membership also covers around four million people with public sector pensions.
Paul Platt, Head of Media, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]