The Office for Budget Responsibility's gloomy growth forecasts have strengthened the need for urgent fundamental reform of public sector pensions, Lord Hutton, the former Labour cabinet minister said on Sunday.
Hutton, who wrote the report that forms the basis for the government's reforms, said the economic assumptions that underpinned his conclusions have now been found to be "too optimistic".
In an interview for the BBC's the World this Weekend, Hutton said that public sector pensions were "heading for the rocks" unless changes were made.
But he also suggested that the government should amend its proposals, saying that the current plans – which involve most public sector workers having to pay an extra 3.2% from their salary in pension contributions – could lead employees opting out of their pension schemes altogether.
http://www.guardian.co.uk/society/2011/dec/04/public-sector-pension-reforms-rocksThis a recap on news and hence an article.