The Audit Commission has released its response to the Public Sector Pension Commission and predictably says members of the scheme must pay more. UNISON believes merging the investment funds is the best way to deal with costs. http://www.bbc.co.uk/news/business-10797739
Proposals from the commission included:
* increasing employee contributions but discourage lower-paid workers from opting out
* raising the retirement age
* allowing local funds to adjust the benefits paid out
Audit Commission chief executive Eugene Sullivan "Without corrective action the gap will widen, the scheme can't continue as it is. Unfunded liabilities are being deferred, and this is storing up problems for the future."
The Audit Commission's report did touch on another way of increasing money for the scheme and that is through merging the investment funds. This is UNISON policy as agreed by 2010 NDC and our own research work has estimated that up to an additional £1billion could flow into the funds if this action was taken. Increasing fund income by this amount would allow the scheme to cut contribution levels for employers and employees and would not require the costs to be heaped on us!
