Public sector pension changes
[ch 4: pages 120-121]There have been important changes to public sector pension arrangements. All public sector employers are required to move staff to career average salary pensions by 2018 (Public Service Pensions Act 2013). The government's transitional arrangements have come under attack for discriminating unlawfully against younger workers and a successful tribunal challenge by a group of judges may have implications for pension changes elsewhere in the public sector, including police officers, teachers, firefighters and prison officers:
An employment tribunal has ruled that transitional arrangements designed to protect older judges at the expense of younger judges discriminated against the younger judges, and also – because of the changing demographic of the judiciary – against female and BAME judges.
The case arose after the government closed the judicial pension scheme in March 2015 and moved serving judges onto a new less favourable scheme. However, older judges were allowed to remain in the old scheme until retirement or until the end of a period of tapered protection. The tribunal ruled that without further analysis, the aim – to protect older judges since they were closer to retirement, at the expense of younger judges – was not legitimate. Achieving consistency in public service pensions reform might be a legitimate aim said the tribunal, but the government had failed to show how the transitional protections achieved this. The measures were also excessive and disproportionate. The transitional arrangements amounted to indirect discrimination that could not be justified and were therefore unlawful. The government plans to appeal.
McCloud & Mostyn v The Lord Chancellor & the Ministry of Justice [2017] ET 2201483/15
https://www.judiciary.gov.uk/wp-content/uploads/2017/01/mccloud-v-moj.pdf
Information about changes to the Local Government Pension Scheme is available from a dedicated website: www.lgpsmember.org. For more information, members should contact the pensions expert at their union.
Information about the impact of TUPE, and about the New Fair Deal for Pensions negotiated by the public services unions can be found on page 476 of Chapter 12.