All Rounder
OK I'll bite
1.) Defence inflation is down to procurement rather than civilianisation; just think what the extra cost would be if they hadn't civilianised. They haven't done it for any reason other than cost.
2.) Both military and CS pensions are under threat. Let's face it Maggie wanted to screw our pensions in 1980 until she realised we actually paid for them. She was convinced by the facts.
The problem is that instead of working from 16-65 and living 5 to 10 years in receipt of a pension afterwards; society is now mostly going to university and not starting work till early 20's and wanting to retire in mid 50's and collect a pension until they die thirty plus years later on average.
The fall in the birth rate led to lots of school closures in recent years because the number of children is less. There will be fewer people of working age paying for all the baby boomers in years to come. Final salary Pensions for CS and military come from current government receipts as well as state retirement pension. Hence why Mr Hutton will be reducing benefits and increasing contributions from employees in a few months because the taxpayer is revolting. However if you listen to the More or Less programme on radio 4 this is just a load of b*****ks because the percentage of GDP will remain essentially the same to pay pensions.
BBC - BBC Radio 4 Programmes - More or Less, 17/09/2010 
I've just listened to the programme and it isn't the one I had thought; I'll find the other programme and link this as well
I can't find the more or less link but this is what it was about
The cost of public service pensions
3.) it's got nothing to do with it , see 1.) above.
EGGP