Background
3.In 2010 the Chancellor of the Exchequer invited Lord Hutton of Furness to chair the Independent Public Service Pensions Commission (“the IPSPC”). The Commission was tasked with undertaking a fundamental structural review of public service pension provision.
4.The IPSPC published its final report(1) in 2011. The report contained recommendations to reform public service pensions to balance the interests of taxpayers, employers and members in relation to the present and future cost of pension commitments in the public service. In March 2011 the Government accepted the IPSPC’s recommendations as the basis for discussions with public service workers, trades unions and other member representative bodies.
5.In November 2011, following the discussions, the Treasury published Public Service Pensions: good pensions that last (2) which set out the Government’s preferred pension scheme design as the framework to inform further discussions. Trades unions were invited to suggest changes to the Government’s preferred scheme design to ensure it best meets the needs of each scheme’s members, within the cost ceilings set by the Government. Following the discussions, scheme-specific design alternatives to the Government’s preferred pension design were put forward.
6.Key scheme design milestones for the new public service pensions schemes were reflected in the following documents:
The Principal Civil Service Pension Scheme Heads of Agreement, 20th December 2011
The NHS Pension Scheme Heads of Agreement in England and Wales, 20th December 2011
The Teachers’ Pension Scheme Heads of Agreement in England and Wales, 20th December 2011
The Local Government Pension Scheme Principles Document in England and Wales, 20th December 2011
The Firefighters’ Pension Scheme in England Heads of Agreement, 9th February 2012
The Principal Civil Service Pension Scheme Proposed Final Agreement, 9th March 2012
The NHS Pension Scheme Proposed Final Agreement in England and Wales, 9th March 2012
The Teachers’ Pension Scheme Proposed Final Agreement in England and Wales, 9th March 2012
The Firefighters’ Pension Scheme in England Proposed Final Agreement, 24th May 2012
The Local Government Pension Scheme Joint Statement, 31st May 2012
Armed Forces Pension Scheme Outline Scheme Design, 31st July 2012
The Police Reform Design Framework in England and Wales, 4th September 2012
The new Armed Forces Pension Scheme: Final Agreement, 16th October 2012
Judicial Pension Reform Written Ministerial Statement, 5th February 2013
7.In the Queen’s Speech on 9th May 2012, the Government announced its intention to bring forward legislation based on the proposed final agreements reached with the main unfunded pension schemes and the recommendations of the IPSPC.
Independent Public Service Pensions Commission: Final report, 10th March 2011, http://cdn.hm-treasury.gov.uk/hutton_final_100311.pdfBack [1]
Public Service Pensions: good pensions that last, HM Treasury, 2nd November 2011, http://cdn.hm-treasury.gov.uk/pensions_publicservice_021111.pdfBack [2]
