Zoe Williams seeks to stimulate a debate about pensions and intergenerational inequality, but seems to have overlooked the issues surrounding the funding of public-sector defined-benefit (DB) pension schemes (All this talk about ‘difficult’ cuts, yet the largest part of Britain’s welfare bill is never mentioned. Why?, 21 May).
Such schemes place enormous pressure on public finances; they typically require a more significant employer contribution – often more than 25% – compared with private-sector defined-contribution (DC) schemes, where employer contributions of around 3%-8% are typical.
