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Page last updated at 07:50 GMT, Thursday, 7 October 2010 08:50 UK

Hutton: Final salary pensions 'fundamentally unfair'

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An interim report, commissioned by the government, has recommended that millions of people who work in the public sector should pay more for their pensions and work longer before they receive them.

The former Labour minister, Lord Hutton, who was asked by David Cameron to carry out a review into the current system, said that final salary pensions for public sector workers should be replaced with schemes that more fairly share the risk between employees and the government.

He told Today presenter John Humphrys that Labour's pension reforms "did not go far enough", adding that "we shouldn't continue with private salary schemes in the public sector".

Although he called retirement at 60 "unsustainable", Lord Hutton vowed that any changes would not represent "a race to the bottom".

Commenting on the recommendations, the TUC's Brendan Barber said there was "huge sensitivity and lots of apprehension" over the planned changes, adding "I hope ministers will tread carefully in dealing with the report."


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