Govt changes pension proposal to appease unions

The Government has watered down one of the main proposals on public sector pensions in the Croke Park Agreement making it more palatable to unions.

It was intended that pensions would be linked to the cost of living rather than based on salaries of serving staff.

However, in an apparent u-turn the Government will not now review pension arrangements until 2014 - two years after the next General election which is scheduled for 2012.