Third way
While it is true many private sector pension schemes have changed from a final salary basis (as still enjoyed in the public sector) to money purchase, calls for all public sector pensions (including for MPs) also to switch to money purchase is a classic example of two blacks not making a white. Money purchase is a very crude answer, and one that transfers far too much responsibility from employer to employee, with potentially damaging results.
Instead, a more satisfactory approach is the "middle way" of pensions based on Career Average Revalued Earnings schemes, which avoid over-rewarding those who receive promotion in their later years, while not disadvantaging the vast majority. This approach is advocated by the Association of Consulting Actuaries and offers an effective solution both for public and private sector pensions.
RONNIE SLOAN
Lomond Road