As changes to state pensions are brought forward to 2016, Steve Simkins, head of public sector pensions at KPMG, says:
“Morale across the public sector is already fragile, so the decision to drive up National Insurance Contributions will put further strain on employee engagement. Although the higher pension and National Insurance contributions represent a good investment, they will become increasingly difficult for many to afford.
“It will also come as little comfort to employees across the public sector to hear that what they sow today will be reaped several times over, tomorrow. The simple fact is that most will be smarting at today’s news; they will not be focusing on the value of their pension in years to come.”
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.