Civil service women told to retire later

The retirement age for civil servants across the country is to be equalised at 65 as part of a government move to slash pension bills.

The move to force women to take their pension later is part of a package to be unveiled tomorrow, but unions are already warning it could trigger strikes next spring.

Another radical proposal being considered by Cabinet Office minister Ruth Kelly is a move away from final salary to "career average" pensions for the public sector.

Other changes may include reducing the rate at which civil servants accrue pension rights and a tightening of the scope for early retirement on a full pension. It is expected that the overhaul will be introduced for new employees from 2006 and be extended to all five million public sector workers by 2013.

Fresh evidence that the Government will equalise the retirement age emerged today when it was revealed that the Treasury's own projections assume such a move.

All public sector unions will meet later this month, when some officials will press for co-ordinated industrial action, including a one-day strike.