Lib Dems slam public sector pensions

The Liberal Democrats have backed a report calling on public sector final salary pension schemes to be axed. The study was produced by pensions analysts at Hargreaves Lansdowne who claim that funding public sector pension liabilities will place a growing burden on the state. They say the best solution is to make public sector pensions less generous: "Instead of having a garannteed income in retirement,public sector workers should have "defined contribution" pensions."

Projections showed the change would mean future public sector pensioners would have smaller pensions than their counterparts today. Jenny Willott, the Lib Dem pensions spokeswoman, backed the call for public sector pensions to be reformed, saying "It is unfair and irresponsible to keep heaping this burden on future generations"