Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/142375
Authors: 
Danzer, Alexander M.
Dolton, Peter
Rosazza Bondibene, Chiara
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 9936
Abstract: 
Radical changes have been implemented to pension schemes across the UK public sector from April 2015. This paper simulates how these changes will affect the lifetime pension and how the negotiated pension changes compare across six public sector schemes by level of education. Specifically, we simulate the occupation specific Defined Benefit (DB) pension wealth accumulated for a representative employee over the lifecycle by factoring in the recent changes to pension conditions. We find that less educated workers with low or moderate earnings in the NHS, Local Government and Civil Service schemes are the winners having secured an increase in the value of their pension of between 10-20%. Graduate workers with faster wage growth in the Civil Service, Teachers and Local Government schemes loose between 3% and 5%. This is in sharp contrast with the Police and Fire forces who have lost around 40% irrespective of their education.
Subjects: 
defined benefit
public sector
pension reforms
JEL: 
J32
H55
J45
Document Type: 
Working Paper

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