In 2015 new Pension Schemes were introduced across the Public Sector. These schemes increased the retirement age. In order to protect members from sudden increases in their retirement age, those within 10 years of retirement were exempt from being transferred into the new schemes.
These ‘protected’ members were allowed to stay in their pre-2015 schemes. Additionally, new financial arrangements (known as the ‘Cost Cap’) were introduced into the new Pension Schemes. The arrangements allowed for any shortfall in Pension Fund to be made good by increased contributions and/or reduced benefits. It also allowed for any excess monies in the scheme to be redistributed back to members via reduced contributions and/or improved benefits.
In the NHS Pension Scheme excess monies have been generated which have allowed for improvements in benefits as follows with effect from 1st April 2019.
- Part timer pension contributions to be based on Actual Pay not WTE pay
- Structural reform to remove ‘cliff edges’ and align contribution rates with tax thresholds
- Introducing a top contribution rate of 12.5%
- Addressing pre 1988 survivor equality issues
- An increase in Death Benefits
The remainder to be used on a mixture of reductions to contributions, improved lump sums and a better accrual rate
However, the principle of ‘Protection’ has been found to be Age Discriminatory and the government has therefore paused the improvements in Benefits until a further decision by the courts.
GMB trade union considers this pause to be unfair because.
- It undermines the 25 year government guarantee in respect of the changes
- It undermines the rules of governance of the scheme
- It undermines Collective Bargaining principles
The issue should be addressed by the Comprehensive Spending Review not by removing the proposed improvements we have already paid for.
GMB is campaigning to un-pause this pause. We need you to support our call asking Liz Truss MP to UNPAUSE THE PAUSE Sign the petition at:- https://www.gmb.org.uk/campaign/tell-liz-truss-stop-public-sector-pension-swindle
"It's outrageous and unacceptable for the Government to pinch over £2.4 billion out of 4.1 million people's pensions to pay for its own mistakes."