“Royal London welcomes the greater certainty for unfunded public service pension scheme members from this decision. The preferred approach, which will give members in scope the choice between (usually) final salary benefits and reformed scheme, career average benefits at the point of retirement means they will have a high degree of certainty over their benefit entitlements at the point that decision will need to be made. Although both of the solutions originally tabled have drawbacks the one most likely to produce the best outcomes for members must be preferred and is rightly being taken forward.
“Although these proposals seek to bring to an end a longstanding legal issue and prevent further litigation going forward, this is above all a human issue. The solution is complex and, for some impacted members, means that the position won’t be completely resolved for many decades. Responses to the consultation from individuals make clear that many are worried about the continuing uncertainty at a time when life itself seems uncertain due to the pandemic. They are concerned at the possible additional personal burden of having to revisit their tax position over a number of years. Others are concerned that putting things right will simply be forgotten or overlooked by their scheme many years into the future. As the Chief Secretary to the Treasury has noted, these workers “provide vital services that all of us count on, and their unwavering commitment is inspiring”. So public service pension schemes have a real and moral duty to ensure relevant member communications and other support is as clear, balanced and jargon-free as possible.”
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