A survey issued today reveals many members of public sector pension schemes (28%) don't understand proposed changes arising from Lord Hutton's inquiry, while a third claim not to have heard about the current review.

With ministers, unions and local government employers still unable to reach agreement over proposals to reform the Local Government Pension Scheme (LGPS), the poll of 2,000 workers across the public sector also suggests local government employers need to take charge of communicating the message on reforms.

According to findings from subsequent focus groups, current communication on pension reform is overly complicated and doesn't give employees a clear picture of what they can expect to receive upon retirement.  Only 32% said their employer has guided their views on how the changes will affect them and just over one in ten, 11%, accept the proposed changes.

Participants informed the survey that having accepted lower pay in exchange for better employee benefits, which they feel are being eroded rather than improved, higher contributions are a big issue amid pay freezes and rising inflation. 

A majority (57%) believe the economic downturn and not greater life expectancy is the man reasons public sector pensions are being reviewed. 

Some 46% of those surveyed disagreed with the statement ‘because people are living longer, they have to work longer' and an overwhelming majority, 72%, would prefer to have a final salary scheme compared to one in five who would opt for career average.

John Wright, head of public sector consulting for pensions consultants Hymans Robertson said the findings show that the Government have ‘a tough challenge ahead in implementing these reforms unless action is taken to educate employees on the value of their public sector pensions, and explain the need and rationale for these changes.'