The Tories are rapidly distancing themselves from the suggestion — made by their leader — that public sector pensions should be phased out.
It is worth reading the full transcript of what David Cameron said in a Q&A session at the Manchester Chamber of Commerce:
We have got to end the apartheid. We are getting into a situation now where pretty much everyone in the private sector has gone to defined contributions and the final salary schemes are closed. In the public sector you have still got a lot of people on final salary schemes including members of parliament.
MPs are going to have to lead by example. We have got to close the MP’s final salary scheme because we have got to be able to turn around to the rest of the public sector and say that over time it does makes sense to move towards defined contribution.
There is an issue of fairness between the private sector and the public sector but there is also an issue of economic efficiency. We do not want to make it so hard for people to move from the public sector to the private sector or from the private sector to the public sector.
My vision over time is to move increasingly towards defined contribution rather than final salary schemes.
This is something (sic) where the government has been remarkably feeble partly because they are in hock to the public sector unions.
Now compare it to what his spokesperson said afterwards:
We know public sector pensions are a big challenge. Nothing has been ruled in or out. Of course the law requires accrued rights to be protected. Before the next election we will outline the policy in more detail.
We have always said that moving MPs onto a defined contribution scheme will help in time with public sector pensions, which everyone sees as a pressing issue. Clearly any changes would involve extensive discussions with interested parties.
Jim Pickard
Kiran Stacey
