Public service pension reforms are expected to roll in an estimated £430bn to the government over the next 50 years.

According to The Spending Review, which was published today by HM Treasury, reforms made to public service pensions are projected to save 40 per cent of net expenditure on the public service pension schemes by 2061-62.

The reforms were delivered in a package during the last parliament and consisted of changes that would help to rebalance taxpayer and member contributions in the short-term and to ensure costs are substantial and fair in the long-term.

Prior to this, the Treasury said during the ten years to 2011, the cost of public service pensions rose by a third, which much of the costs falling to the taxpayer.

Chancellor George Osborne’s emergency Budget speech showcased more reforms to public sector pensions, as he announced the government intends to work with Local Government Pension Schemes to pool investments.

The government’s Budget paper said it hoped pooling LGPS investments will significantly reduce costs while maintaining overall investment performance. As part of this the government will invite local authorities to come forward with their own proposals to meet common criteria for delivering savings.

A consultation, which will be published later this year, will set out those detailed criteria as well as backstop legislation, which will ensure that those administering authorities that do not come forward with sufficiently ambitious proposals are required to pool investments.

In another area of public service pensions, the Fire Brigades Union has begun a legal challenge against the government because of changes to its pension scheme.

New rules to firefighters’ pensions mean firefighters are required to work to the age of 60 or take a reduced pension. However, the government has put in place protection arrangements for older workers, allowing them to stay in the old scheme, which is left unaffected by the changes.

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