Pensions
The question
To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the fiscal sustainability of unfunded state and public sector pension liabilities.
Answered by Treasury
The Office for Budget Responsibility’s recent fiscal sustainability analysis provides an independent assessment of the long-term cost of the state and unfunded public service pension schemes.
The report set out OBR’s assumption that net public service pension expenditure is expected to fall from around 1.2 per cent of GDP to around 0.9 per cent of GDP over the next 50 years. It also set out that State Pension expenditure is projected to rise from c.5% of GDP to c.9% of GDP by FYE 2076. These commitments are fully funded within our fiscal rules.
The Government continues to monitor the long-term sustainability of the public finances, including the fiscal implications of state and public service pensions.
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