Consultation outcome

Public service pension schemes consultation: changes to the transitional arrangements to the 2015 schemes

This consultation has concluded

Download the full outcome

Public Service Pensions: Government response to consultation

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Public Service Pensions leaflet

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Public Service Pensions: EqIA

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Detail of outcome

Consultation Response

  • The government is very grateful for the 3,144 responses it has received from members of the public and organisations including employers, administrators, financial advisers and member representative bodies.
  • Having considered the responses, the government will proceed with the deferred choice underpin. This approach will mean all eligible members are members of their legacy scheme for the period between 1 April 2015 and 31 March 2022, known as the remedy period. Eligible members retiring after implementation will get a choice of whether to take legacy or reformed scheme benefits for the remedy period when their pension benefits become payable. Where affected reformed scheme members retire before implementation, a choice between benefits will be offered as soon as practicable. For some cases, particularly those already in receipt of pension benefits, this may need to be after legislative changes are in place.
  • Furthermore, the government confirms that all public servants who continue in service from 1 April 2022 onwards will do so as members of their respective reformed scheme. Legacy schemes will be closed in relation to service after 31 March 2022.
  • The consultation response included on this page provides further analysis of responses and detail regarding the government’s approach to resolve the discrimination. The Equality Impact Assessment provides detailed analysis of any potential impacts on those with protected characteristics as a result of the policies. An accompanying leaflet provides a high-level summary of the government’s policies and who is affected by them.

Update on the Cost Control Mechanism and the 2020 valuations

  • Alongside the consultation response, the government is making related announcements on the completion of the cost control element of the 2016 valuations and changes to employer contribution rates following the 2020 valuations.
  • Regarding the cost control mechanism, any ceiling breaches that occur from the completion of the 2016 valuations will not be implemented, while floor breaches will be honoured.
  • Additionally, any changes to employer contribution rates resulting from the 2020 valuations will be delayed from April 2023 to April 2024.
  • Further information can be found within the corresponding document ‘Update on the 2016 and 2020 Valuations’.

Original consultation

Summary

This consultation seeks views on proposals relating to the 2015 public service pension scheme reforms.

This consultation ran from
to

Consultation description

1.Consultation

  • Following the Court of Appeal judgment in December 2018, the government has been working to fix the discrimination identified in the policy of transitional protection that was part of the 2015 reforms to public service pension schemes. This consultation sets out the government’s proposals for addressing this discrimination along with the government’s plans for the future.

  • The government is committed to fixing the discrimination as quickly as possible and welcomes your views on how best to do this.

  • The consultation document itself, an accompanying Equality Impact Assessment and a leaflet which sets out a summary of the proposals can be found on this page. The scope of the schemes covered by this consultation can also be found on page 3 of the document itself. The consultation begins on 16 July 2020 and will close on 11 October 2020.

2.Update on the cost control element of the 2016 Valuations

  • Alongside the public consultation, the government is making a related announcement on the cost control mechanism, which can also be found on this page. This provides an update on the pause of cost control mechanism, and the next steps government will take.

Documents

Public Service Pensions Consultation

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Public Service Pensions leaflet

Public Service Pensions EIA

Published 16 July 2020
Last updated 4 February 2021 + show all updates
  1. Updated with Detail of Outcome and Consultation response documents.

  2. First published.