The Bank of England is seen behind blossoming flowers in the City of London
The Bank of England is seen behind blossoming flowers in the City of London April 23, 2010.

Public sector pensions are becoming a 'national Ponsi scheme' according to the Public Sector Pensions Commission after the cost of funding is 'probably larger than the national debt'.

The national debt which currently has a structural deficit of around £150bn yet remains around £777bn in total (2009/10).

With over £777bn needed to fund it just to remain in the black, the public sector pensions schemes have been described as 'effective Ponzi schemes' funding the lives of pensioners without any sustainable funding.

The UK Government has pledged to reduce the structural deficit of the national debt yet has not made any announcements on what the Institute of Economic Affairs says is an 'urgent need for the government to take action'.

"The appalling lack of transparency in public sector pensions has exacerbated this crisis." It added.

The Public Sector Pensions commissions was set-up in May by the Institute of Economic Affairs.