It has just been reported that John Lewis has been forced to downgrade its generous pension scheme. As one financial journalist wrote: “When John Lewis scraps its final salary scheme you know they are doomed in the private sector.”
There is, however, one sector which has no such problems.
The public sector has not curbed its unsustainable final salary pension schemes because the public are unwillingly paying for the huge pension fund “black hole”, especially those at higher management level.
Cowardly politicians have backed off challenging the unions.
One move that would be popular with those less well-off would be to force the management into a less lucrative scheme and if these bosses say they will leave then call their bluff, I doubt if many of them will be missed.