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What should be done about the pound 1.1 trillion unfunded public pension liability identified in the recent Policy Exchange report?
Neil Record, Policy Exchange report author and chairman, Record plc
We call for public sector employers that make pension provision for their staff to pay, jointly with employees for contributory schemes, a cash amount each year equivalent to the full market value of the pension benefits accrued by staff in that year. We also call for annual cash pension contributions to be used to buy index-linked gilts of sufficient value to fully pay for all pension promises made in that year. The index-linked gilts should be purchased and issued at market prices. We want a new body to be established, the Public Sector Pension Fund or similar, to receive contributions, to buy index-linked gilts,...