Public sector pensions "like an unstable Ponzi scheme"

Posted on Jul 07, 2010

According to a report by the Public Sector Pensions Commission (PSPC), the true value of the main unfunded public service pension schemes is over 40% of salary, which is double the current combined employer and employee contribution rate of 20%.

The report also claims that a lack of transparency over the real costs of public sector pensions means that the costs are forced onto future tax payers.

Peter Tomkins, Commission Chairman, commented "Like an unstable Ponzi scheme, it will only work if tomorrow's generations are able to stomach a higher cost to pay for the unfunded promises made today."