According to a commission report, the public sector pension system needs a radical reform as the pensions is costing twice as much as it was estimated before.

The pension is costing a minimum of 40% of the salaries which is an extra burden for the taxpayers to pay.

The Commission of Public Sector Pension has said that only half of the pensions come from the employers and the workers but the rest comes from the pocket of the taxpayers. In a response to this comment the TUC has said that the commission was set up by the private sector employers.

TUC also accused the employers of coming after the public sector pensions to cut taxes for businesses.

Most of the public sectors committed to provide pensions to its employees but the money is not put aside until the employee retires. This is known as the unfunded pension liabilities and has been growing as the employees live longer.

The commission has said about lack of transparency in the costs of these pensions which costs 35 billion euros per year.

It has said that the costs were automatically forced on to the taxpayers unless the pension system won’t be changed.