Lord Hutton’s independent review said linking their pensions to career average earnings, rather than final salaries, would make them “affordable”.
The government has already accepted a previous recommendation of Lord Hutton that public servants should soon pay higher contributions.
Unions have condemned the latest plans and will consider strike action.
Dave Prentis, general secretary of the Unison union, said: “This will be just one more attack on innocent public sector workers who are being expected to pay the price of the deficit, while the bankers who caused it continue to enjoy bumper pay and bonuses.”
The government said it was grateful for the work that Lord Hutton had completed and would give it “careful consideration”.
The Prime Minister’s official spokesman said the government would engage with public sector unions in taking forward the reforms.
Shadow chief secretary to the Treasury, Angela Eagle, said pension reform was a long-term issue, and should not be used by the government to tackle the deficit.
