An independent body aiming to come up with solutions to the unfunded public sector pension problem has been launched by pensions policy experts.

The Public Sector Pensions Commission will address issues such as increasing longevity in a bid to find reforms that will ensure these types of pension remain financially sustainable for the long-term.

The Commission was set up in response to an initiative from the Institute of Economic Affairs, the Institute of Directors and other groups, and is chaired by an independent actuary - Peter Tompkins, a fellow of the Institute of Actuaries. A final report is expected in summer 2010 looking at the potential for reform, and will follow extensive consultation with experts from across the pensions field.

Treasury documents released this month show that the official estimate of unfunded liabilities has increased to £770bn, an increase from the Government's last published estimate of £650bn. This is equivalent to around £30,000 per household in the UK, and is almost as high as the official national debt.

Issues such as the emerging 'pensions apartheid' between public sector workers with final salary benefits and private sector employees with defined contribution schemes; how efficient recent reforms to public sector pensions and the cost-capping initiatives introduced in the Pre-Budget Report; whether it is reasonable for DB schemes to continue to be supported by the taxpayer; and the most practical ways to reform public sector pensions, will all be addressed by the Commission.

"Never has the contrast between the retirement prospects of public sector workers and their private sector counterparts been more stark," commented Tompkins.

"Faced with much increased costs, a new Government will need to look hard at public sector pensions policy early on after the election if it is to manage and control the costs for future generations."

The rest of the Commission is made up by: Philip Booth, Institute of Economic Affairs, Vice Chairman; David Acland CBE DL, CHK Charities Ltd; Graeme Leach, Institute of Directors; Andrew Lilico, Policy Exchange; Neil Record, Institute of Economic Affairs; Malcolm Small, Tax Incentivised Savings Association; and Corin Taylor, Institute of Directors, secretary.

Anyone with knowledge of and interest in public sector pensions is welcome to submit evidence to the Public Sector Pensions Commission here.

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