By Marcus Leach
For the first time the government will reveal plans that aims to link the public sector retirement age to that of the state pension age, which will rise to 66.
Further to that they will announce plans to base public sector pensions on workers' average salaries. However, all benefits built up before such changes would be protected.
According to Chief Secretary to the Treasury Danny Alexander the public sector can not be excluded from the pension reforms.
The news has not been taken well by public sector workers who are due to stage a mass strike, with 750,000 workers expected to take part in the protest.
In a speech to be delivered later on Friday Mr Alexander will announce that many of Lord Hutton's recommendations on public sector reform will be adopted.
The main change that will affect public sector workers, barring the army, police and fire service, will see the current retirement age, 60, rise to 66.
Further to that public sector workers earning less than £15,000 per year will not face an increase in pension contributions, and those earning less than £18,000 will only see a 1.5% rise in their contributions.
"There is an indisputable case for reforming public sector pensions to ensure that they are affordable and sustainable but still amongst the very best available," Mr Alexander will say in his speech.
"That case is simple. People are living much longer - the average 60 year old is living ten years longer now than they did in the 70s. This advance comes at a price. It is unjustifiable to ask the taxpayer to work longer and pay more so that public sector workers can retire earlier and receive more themselves."
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