Hutton: public sector opt-outs will rise if govt stops negotiations

Government reforms to public sector pensions could force more people to opt-out and abandon retirement saving, Lord Hutton is expected to say.

Hutton - who conducted a review of public sector pension funds for the coalition government - is set to make the remarks in a speech later today, the BBC reports.

He will urge ministers to have a "full and proper consultation and discussion with the trade unions".

The former Labour work and pensions secretary is set to address the Institute for Public Policy Research later today.

He is also expected to restate change is unavoidable due to increases in average life expectancy.

However, he will say scheme members, particularly those in the Local Government Pension Scheme, are likely to leave if employee contributions are raised too much.

He is likely to call for union consultation to avoid planned strikes on 30 June.

Danny Alexander set out the government's plan to move public sector workers to a career average pension arrangement on Friday.

However, the move was savaged by unions who believed they were still in the negotiation phase with the government.