Here we go again - another attack on public-sector pensions (Cost of public-sector pensions equal to 85% of GDP, think tank warns, 29 June, 2009). The report by the British-North American Committee on government commitments to public-sector pensions in the UK, US and Canada demands clarification on a number of key points.

First, the current level of public sector pension provision is self-funding, ie the money needed is covered by the contributions made by employers and employees. This scheme is not asking for bailouts from the government.

Second, the cost of providing of a public-sector pension, according to a recent report by the Pension Policy Institute, is the same the cost of a typical final salary scheme in the private sector.

Third, the government has negotiated with the trade unions and an agreement has been reached to raise the retirement age for new entrants for public-sector schemes; to increase average member contributions; and to cap the increase in government costs.

And, finally, the report is an estimate based on an extremely cautious basis and fails to mention that the potential liability is spread over 50 to 60 years.

Pensions are important to the quality of life of every citizen, ensuring financial security in old age - they are not a luxury add-on at the whim of the employer.
Gail Cartmail
Assistant general secretary for the public sector, Unite the Union

• This article was amended on 30 June 2009. The original link in the opening paragraph referred to a "think thank". This has been corrected.