Lord Hutton of Furness set out his proposals for comprehensive, long-term structural reform of public service pension schemes, after a comprehensive nine-month review.
The final report of the Independent Public Services Pension Commission sets out a number of detailed recommendations to the Government on how public service pensions can be made sustainable and affordable in the future, while providing an adequate level of retirement income.
The main recommendation of the report is changing the existing final salary scheme to a career average DB scheme, with appropriate adjustments in earlier years so that benefits maintain their value. The report said it should be possible to introduce these new schemes before 2015, while allowing a longer transition, where needed, for groups such as the armed forces and police.