It's probably a good idea to have private and public sector pensions a little more even. What the Conservatives and the corporations want, though, is no pensions--a race to the bottom. What they want is no unions, no pensions, no minimum wage, bringing over foreign owrkers who will work for less That's just going to create more pressure on the social safety net for old people though, which is already assailed by the glut of Baby Boomers hitting their dotage. It's going to hollow out our middle class.
Wage costs are not the issue--public sector workers make more than private at lower levels (admin) but they fare much worse as you move up the chain. Heck, I don't even think Deputy Ministers make $200,000 and some of them have a staff of thousands.