Long live pensions

The news a number of public sector unions are balloting their membership for strike action over reforms to pension schemes will see the coalition government face its first serious test of resolve, and importantly its first significant foray into major pensions policy.

In its final years, the last administration made a half-hearted attempt to tackle the issue and stepped back when faced with strike action, conscious of the fact an election was imminent. The debate about one system being better than another is already becoming a tired one, driven more by politics than sensible discussion about the real issues of adequate pension arrangements. While there are some extremes in terms of generosity in the public sector – not least among MPs themselves – the average public sector worker will retire with an annual pension of around £8,000 before tax. At...