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Public service pensions: Government adopts deferred choice underpin to remedy McCloud age discrimination in 2015 reforms; legislation from 1 April 2022 and scheme implications

Published on: 01 June 2021

Published by a LexisNexis Pensions expert

Legal News

Article summary

Original report HM Treasury issues its response to the consultation on the 2015 public service pension scheme reforms, LNB News 04/02/2021 109

What was the background to the consultation?

In April 2015, the principal public service pension arrangements were overhauled with the declared aim of making them fairer, more sustainable and affordable, reflecting the 2011 Hutton Report. Change was deemed necessary as expenditure on the legacy schemes had risen over time. The government viewed the new designs as more progressive, seeking to smooth pension value across pay levels. Consequently, some lower and middle earners saw improved outcomes under the reworked schemes. A further feature was protection for those within ten years of retirement, who were excluded, wholly or in part, from the new schemes and kept in their legacy arrangements (or treated in a manner ensuring they were no worse off than if they had stayed in those schemes). This position followed discussions with trade unions and other key stakeholders, providing greater certainty for people close to retirement. The policy aimed to balance value between pay bands, delivering a system regarded as fairer for different income groups by government. In 2018, the Court of Appeal found this to be unfairly...

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