Budget 2016: Public sector employers face higher pension costs
Michaela Berry, partner and head of the public sector team at Sackers, comments:
“The Government has taken steps to ensure that the cost of providing public sector pensions is fairly reflected in the contributions made by employers. This will be done by reducing the discount rate in unfunded public service pension schemes, thereby increasing employer contributions to those schemes from 2019-20.
“Although this maintains the 2011 pledge by the Coalition government of 25 years of protection against negative benefit changes in public sector schemes, it will certainly create extra costs for employers.”