Pensions - Articles - Pension plans for public sector workers hugely complex


The Government has today issued a written statement about how it plans to respond to a recent Court of Appeal ruling about age discrimination in public sector pension schemes.

 The full text of the statement can be found here: https://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Lords/2020-03-25/HLWS182/

 The key points are:
 - The government will consult later in the year on a plan which would involve millions of public sector workers being allowed to make a choice to have their pension for certain years worked out under the old (pre-reform) rules rather than the new rules, if this would give them a better outcome;
 - The statement leaves open the possibility that any change could affect tax calculations going back several years; if this is so, many members will need complex advice to decide what to do;
 - The government has not yet said how members will be advised what to do or who will pay for any advice;
 - The government has not yet said how it plans to address the issues of discrimination going forward;

 Commenting Steve Webb, partner at Lane Clark & Peacock said:'Today's statement shows the massive complexity of unpicking public sector pension reforms following the recent decision by the Court of Appeal. If the government goes ahead with its plans, complex calculations will need to be made for millions of public sector workers, including retired members, to help them decide which scheme would be of most benefit. Worse still, there is a chance that retrospective changes to pensions could affect tax calculations going back several years. Members will need access to good advice to make the right choice and the government has not yet made it clear who will pay for this. There is a strong case for ministers to waive any knock-on consequences for tax bills for previous years, otherwise the decision could be extremely complex for some workers and retired public servants’'.
  

Back to Index


Similar News to this Story

94 percent view State Pension as an entitlement not benefit
Majority of adults aged 66+ say that Triple Lock is affordable and fair to older generations. Around one in seven rely on the State Pension to provide
Fair play off the pitch
Male players in the English Premier League earn an average of more than £3 million per year, while their female counterparts average around £47,000. T
Why Bitcoin matters to Pension Schemes
Back in November 2024, Cartwright Pension Trusts announced its role in facilitating the first-ever UK DB pension trust investment in Bitcoin. With the

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.