<p><br /> A government report has caused anger among the unions after it called for an end to final salary pension schemes for public sector workers.<br /> </p><p><br /> Former Labour Cabinet minister Lord Hutton says long-term structural reform is needed to public sector pensions as people are living longer.<br /> </p><p><br /> He has called for a new model of pensions to be introduced that share the risk more fairly between the Government and workers.<br /> </p><p><br /> Union leaders are warning that public sector workers won't be happy by the review which they say calls for them to pay more for a less generous pension.<br /> </p><p><br /> TUC general secretary Brendan Barber said: "Public sector workers are already facing job cuts, a pay freeze and increased workloads as they are expected to do more with less.<br /> </p><p><br /> "They have already had the value of their pensions cut by the switch to CPI indexing, which will slice a little off their pension every year."<br /> </p><p><br /> He continued "At a time when inflation is breaking targets and pay is already frozen, asking people to pay immediate increased contributions adds up to a significant pay cut."<br /> </p><p><br /> Lord Hutton has defended the reports conclusions: "My real focus has been on long-term reforms. We have under-estimated the cost of providing the current range of public sector pensions for years."<br /> </p><p><br /> The former minister said he was not suggesting taking action against pension rights that have already been built up, arguing that increasing contributions was the "more effective" way forward.<br /> </p>
