Public Sector Pensions Compromise
Trade unions and the government have compromised over retirement ages
19th October 2005
A compromise has been agreed in the long-running dispute between the government and the Trades Union Congress (TUC) over the future reform of several public sector pension scheme.
The government have been arguing for a blanket increase in the retirement age to 65, a proposal strongly resisted by the unions.
It's understood that the government have now dropped this idea, and in return the TUC has accepted that a higher standard retirement age will be introduced, but only for new staff.
Reactions
The TUC said it was a 'sensible compromise' that would protect their members' pension arrangements and plans, while the government described it as a breakthrough that the unions have accepted that demographic change meant a higher retirement age was necessary to protect the future of the pensions system.
Business leaders were less happy about the compromise though, viewing it as a victory for union pressure and a cop-out by the government.
Read More: BBC : Deal on public sector pensions
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