WHAT DO YOU MAKE OF LORD HUTTON’S RECOMMENDATIONS

JOHN CRIDLAND | CBI

He is clear that traditional final salary defined benefit schemes are not a viable way forward. Everybody needs to understand the true scale of pension liabilities. Every year there is a £10bn gap between what public sector employees and employers contribute and the value of the benefits that the state promises to them.

ANTOINE BOZIO | IFS

Lord Hutton's interim report on public service pensions recommended an increase in employee contributions in the short term. Any final recommendations should consider how cost effectively public service pensions attract and retain the desired calibre of staff in the public sector.

PETER BOOTH | INSTITUTE OF ECONOMIC AFFAIRS

Many of the suggestions for long-term reform of the schemes are sensible but the report ducks some of the crucial issues. We must put the accounting for public sector pension schemes on a proper economic footing. Furthermore, the full costs of public sector schemes must be borne by employers and employees.