Coalition reforms to unfunded public sector pension schemes will be derailed by a £15.4bn funding shortfall by 2017, a report by the Centre for Policy Studies (CPS) think-tank claims.
Report author, pensions analyst and CPS director Michael Johnson, said a ‘cashflow crunch' would reach ‘unsustainable levels' within five years – with an estimated £4 out of every £5 paid to former civil servants, teachers and NHS staff coming from the taxpayer.
