PSPR is a reduction of certain public service pensions introduced on 1 January 2011 under FEMPI 2010 and significantly extended on 1 July 2013 under FEMPI 2013. News & insight for public finance professionals. This engagement needs to be informed by serious scheme-level discussions involving the relevant unions.”, to receive daily news from Public Finance to your inbox, © 2020 Public Finance. The government has confirmed that the Court of Appeal ruling that changes it made to judges and firefighter’s pensions were discriminatory on the grounds of age, applies to all public sector pension schemes. “Continuing to resist the full implications of the judgment in court would only add to the uncertainty experienced by members.”. Public Sector Pension Ruling and the Armed Forces On 15 July the Government issued a statement in response to the Court of Appeal’s ruling against it in the McCloud case (the challenge by firefighters and judges to the transitional arrangements that accompanied their new 2015 pensions schemes) and the subsequent Supreme Court decision … Supreme court ruling to apply to all public sector pension schemes. UK public sector pension fund administrators remain in the dark despite the government accepting defeat in a landmark pension ruling, PF has learned. In 2015 the Government introduced reforms to public service pensions, meaning most public sector workers were moved into new pension schemes in 2015. He also noted that the impact would vary between funds, with some individual employers being more adversely affected than others. The difficulty in finding a solution is that the changes have created both winners and losers – and putting things right could do the same. The Supreme Court decision will also apply for a similar pensions case regarding firefighters; law firm Leigh Day, which acts for around 250 judges, predicts the ruling will have further implications on other public sector employees too, such as police officers, teachers, prison officers and National Health Service (NHS) staff. Following consultation with trade unions, the government agreed it would be wrong for those closest to pension age to see last-minute changes to the rules. Some people may have been able to contract out of the additional state pension if their employer(s) ran a contracted-out pension scheme. UK public sector pension fund administrators remain in the dark despite the government accepting defeat in a landmark pension ruling, PF has learned. This scheme … It was this age cut-off that was the subject of an employment tribunal case brought by firefighters and judges, which ended up in the court of appeal. Public sector unions shun govt request to forego salary hike court hearings. The unions argued that an age cut-off was discriminatory because it meant younger workers faced changes in their entitlements while older workers did not. It is estimated that the annual pension bill as a result of the ruling could cost the government up to £4bn. So one option that avoids creating new winners and losers would be to pay people the greater of their “old rules” pension and their “new rules” pension for that period – though this would be messy administratively. “The judgment does not alter the government’s commitment to public sector pensions that are fair to both … The Ministry of Defence said personnel would be updated on the next steps for the department once the details for Armed Forces pensions had … Substantial reversal of PSPR has taken place in recent years and when the PSPR reversal provisions in thePublic Service Pay and Pensions Act 2017are fully in effect from 1 January 2020, only a small number of public service pensions and new pensi… Even this assumes that potentially contentious legislation can be got through a House of Commons where the government may not have a working majority. Taxpayers face £4bn annual pension bill after court ruling. Workers from local government, the civil service, NHS and more will be impacted by a supreme court ruling that found pension changes from 2015 were discriminatory … “It is now with the government to sit down with the tribunal and go through this, and it will be months, hopefully not years,” Sellstrom said. The government has admitted a Supreme Court decision which ruled that changes made to firefighters' pensions were discriminatory will have repercussions across the public sector. This could add £4 billion to public sector pension scheme liabilities and result in further contribution rate rises, as well as the possibility of scheme re-design and trade … The government had an appeal upheld by the court and could now pay out billions to remedy the situation, as valuations on public sector pensions were paused pending the legal process. 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