Public sector pension arrangements are not sustainable, business and employers' group Ibec has said.
Speaking at a human resources conference in Dublin today, Ibec director Brendan McGinty said it was time for everyone, whether in the private or public sector, to "take responsibility for their own lives and look at the reality of saving for retirement".
Brendan McGinty, Ibec
While the private sector is adjusting painfully to a changed world, pension arrangements in the public sector are not sustainable and need urgent reform," Mr McGinty said.
"The dramatic rise in the cost of pensions over the last five years is forcing private sector employers to seek higher contributions from employees and to close membership of defined benefit schemes for new staff members."
Defined benefit schemes traditionally offer much better, guaranteed, retirement packages than defined contribution schemes, which are entirely dependent on the value of an employee's contributions on the date of retirement.
He said pension costs have risen because of stricter funding standards, higher pay, low long-term interest rates, poorly performing equity markets and longer life-expectancy.
He said employers could not afford further "cost hits" affecting pension provision and that additional costs would further erode competitiveness and cost jobs.
Resistance by some trade unions to "inevitable change" was "short-sighted", he added.
Mr McGinty said the cost of pension provision in the public service was higher than in the private sector and that pensions are indexed to pay scales and not just inflation.
"This cannot continue indefinitely. If the second benchmarking process is to have any credibility in the eyes of the public, it is essential that the benchmarking body undertakes a detailed actuarial assessment of the real value of public sector pensions along with annual leave, security of tenure, working hours and conditions of employment. Nothing less will do."