Al,
I just don't know what to think anymore on pensions; I just can't trust a word anybody says these days. We hear that the AFPS 15 scheme is good for 25 years and there will no further fundamental change, but then you get fundamental change because of changes to underlying policy and rules.
They probably can't afford to increase salaries to take the abatement into account. Well, they probably can, but I doubt they would, probably citing the need to get debt under control, don't want to set a precedent, public sector all in it together etc. They'd probably even cite the risk to inflationary pressures with a rise, that despite the inflation rate being substantially below the 2% target for how long now? The double-digit pay rise for MPs wouldn't even register on the hypocrisy & moral maneuverability scale. When it comes to pensions I just wonder 'what now?' whenever I hear Osborne et al opening their mouths and wonder why we all bother making the effort. After all, that the much vaunted SDSR focused on equipment budgets and completely neglected the personnel side, just points to how seriously they consider people as the most valuable asset.