Index public sector pensions to economic growth, says ACA

Could improve ‘fairness and sustainability’ of LGPS and other public schemes

James Phillips
clock • 3 min read
Index public sector pensions to economic growth, says ACA

Public sector pension increases should be linked to a stochastic analysis of long-term GDP growth in the wider UK economy, the Association of Consulting Actuaries (ACA) has said.

The current methodology for calculating the cost of public sector liabilities will "almost inevitably" overestimate or underestimate the value, the association warned. Instead, adopting appropri...

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James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

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