A new report from the European Commission brings further unwelcome news for charities that participate in local government pension schemes, says David Davison.

A report from the European Commission has cited the UK, Ireland, Greece and Slovenia as the countries most needing to take action over the impact on their public finances of an ageing population.

These countries are viewed as being exposed to greater risks as a result of very large projected increases in age-related expenditure such as state and public sector pensions.

This is further unwelcome news for charities who participate in local government pension schemes who undoubtedly will be asked to continue to stump up for the increasing cost of providing their staff with final salary pensions.

The report suggests raising the retirement age, reducing the accrual of future pension rights and removing incentives for early retirement as ways to begin to address the issues faced. Regardless of which solution or combination of solutions which are adopted it seems change will be inevitable as the current situation is unsustainable.