So the Treasury is now calculating the public sector pensions costson the same basis as it forces the private sector to. Not surprisingly, using the new discount rate, the sums have ballooned.

The Treasury figures disclosed that the provision for
the NHS pension scheme this year is some £26.8 billion, rather than the
£7.8 billion in the previous year’s figures.

The
Teachers’ Pension Scheme for England and Wales is £22.2 billion,
compared to £6.9 billion, while the Armed Forces scheme is £14.5
billion rather than £3.8 billion.

The Civil Service superannuation scheme, meanwhile, is £16.7 billion, compared to £5.5 billion previously.

The
increases were caused by a change in the so-called "discount rate" used
to calculate how fast interest rates will erode the pensions bill.

The
Government had previously used a generous formula including a discount
rate of 3.5 per cent on its liabilities but has reduced that to 2.8 per
cent – closer to rates used by the private sector.

One interesting question. Is that a one off adjustment showing the effects of the change? Or are those figures annual? Is the debt accumulating at 71 billion each year? I hope not as that’s about half of the entire income tax take.

"The annual cash payment from unfunded schemes will rise gradually from
about 1.5 per cent of GDP now to 2.1 per cent by the middle of the
century, putting the UK in a much better position than many other
developed economies to deal with the fiscal challenges of the future."

Hhhmm. 2.1% of GDP? No, that’s about 5 p on income tax.  Still, it’s a pretty large sum to be paying just for public sector pensions, isn’t it. Perhaps they might need to come of the inflation proofing, early retirement and final salary things. After all, they do get paid more than the private sector anyway, don’t they.