Retirement Age Will Rise Amid Pensions Row

The public sector retirement age will rise to the state pension age of 66 in new "affordable, sustainable, high quality and fair" reforms announced by the government.

Plans to base pensions on average salaries and increase contributions - to an average of 3.2% - have been revealed by Chief Secretary to the Treasury Danny Alexander .

Mr Alexander said the public sector retirement age - currently 60 in some cases - would rise by 2020, with exemptions for certain occupations, such as firefighters, police and the military.

He urged public workers to "seize the opportunity for change" and warned it would be a "colossal mistake" to reject the best deal the Government will offer for "many years to come".

His warning comes as up to 750,000 teachers and civil servants are planning to walk out on June 30, during what is being labelled a 'summer of strikes'.

He added: "A strike now might be in the union bosses' interests, but it is not in yours. Don't let them sacrifice your pension for their political platform."

The politician said this is the sensible way to move with the times as people live longer and to make sure people get the best pensions available.

He denied the proposals could lead to strike action by more unions.

But it comes as the National Association of Head Teachers prepares to announce if its members will be balloted on industrial action over pension cuts.

A vote for strikes will see them join Public and Commercial Services (PCS), National Union of Teachers and Association of Teachers and Lecturers members on the picket line.

Mr Alexander said the Government would adopt many of the recommendations by former Labour Cabinet minister Lord Hutton, including for final salary pensions to be replaced by those based on career-average earnings.

But he said the new reforms would not affect pensions that have already been earned.

He also ruled out increased pension contributions for those with salaries of less than £15,000 and imposed a cap of 1.5% for workers picking up less than £18,000.

"There is an indisputable case for reforming public sector pensions to ensure that they are affordable and sustainable but still amongst the very best available," he said.

"That case is simple. People are living much longer - the average 60-year-old is living 10 years longer now than they did in the '70s.

"This advance comes at a price. It is unjustifiable to ask the taxpayer to work longer and pay more so that public sector workers can retire earlier and receive more themselves."

Mr Alexander also pointed out that although a majority of those union members who voted did opt for industrial action, that still represented a minority of total member numbers.

PCS union general secretary Mark Serwotka described the changes as "absolute daylight robbery".

"I don't think it's surprising that people will want to defend themselves and if you're going to defend yourselves it obviously makes sense that you make common cause with council workers, health workers and teachers because we all face the same attacks," he said.

The existing retirement age for most public sector workers is 60.

The planned strikes are set to close schools and sixth form colleges, jobcentres, government offices and courts.

They will also involve prison staff, police community support officers, immigration officials and DVLA staff.