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13 September 2012

Public Service Pensions Bill published today delivers final stage in halving cost of pensions

The Public Service Pensions Bill 2013 will be published today, the final stage in delivering billions of pounds of savings from reforms. The Bill is forecast to save £65 billion over the next fifty years, a significant proportion of the total of more than £430 billion which the Government’s overall package of reforms to public service pensions is estimated to save.

Reforms will reduce public service pensions costs by around half, delivering sustainability for the long-term while ensuring that public service pensions remain amongst the very best available.

The Independent Public Service Pensions Commission published its final report in March 2011. The Government accepted its recommendations as the basis for consultation with public servants, trades unions and other member representatives and this Bill implements the agreements reached:

The Bill will also close the generous and outdated Great Offices of State pensions for new office holders and move to a scheme equivalent to that available for ministers.
Chief Secretary to the Treasury, Danny Alexander, said:

"This Bill is the final stage in delivering sustainable public service pensions. It will cut the cost to taxpayers by nearly half, while ensuring that public sector workers, rightly, continue to receive pensions amongst the very best available.

“This is a good deal for taxpayers and a good deal for public service workers: a settlement for a generation.”

Notes for Editors

1. Further details of the Public Service Pensions Bill with a link to the bill itself on the Parliament website.

2. The Office for Budget Responsibility (OBR)’s Fiscal Sustainability Report 2012 (published 12 July 2012) estimated that the Government’s reforms will cut the costs of public service pensions by 40 per cent over the next fifty years, with net costs falling from 1.5 per cent of GDP without reform, to 0.9 per cent with reform by 2061-62.

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