Sir, It is wrong to argue that current public sector pension provision is a “chronic problem” and unaffordable in the long term (“Future shock”, leading article, June 22). A National Audit Office review published in the spring explained that while costs would rise from the current 1.7 per cent of GDP to a peak of 1.9 per cent in 2018, they will then fall back to 1.7 per cent by 2060.
However, given the Government’s commitment to review pensions provision, it is right that John Hutton should look at total remuneration packages, particularly as the current debate appears to look at only one side of the balance sheet. There is already comprehensive evidence that senior salaries in the Civil Service — on average about £78,000 — are substantially below comparable private sector levels, while private sector managers have retained pension provision at a level little different to that of the public sector. And while the public sector may shrink, the State will still need to recruit and retain high-quality senior managers.
Moreover, seeking to remove existing accrued rights would be little short of theft, particularly when the real issue is the retreat from decent pension provision for private sector workers, to which the media should devote more energy and attention.
Jonathan Baume
General Secretary, FDA