Important update on your Pension: The Government's Approach to the 2015 Remedy
The UK government’s announcement Following the public consultation held in 2020, the UK government has now set out its approach to remedying the age discrimination found in the 2015 pension reforms. Having considered the response to the consultation, the UK government has decided to implement a ‘deferred choice underpin’ which was the approach favoured by the majority of respondents.
Important update on your Pension: The McCloud/Sargeant judgement and the 2015 Remedy
What is it? The McCloud/Sargeant judgements refer to the 2018 Court of Appeal ruling that found part of the protections included in the CARE reforms unlawfully discriminated against younger members of the Judicial and Firefighters’ pension schemes, as only older scheme members were allowed to remain in the final salary schemes.
NHS Scotland Additional Voluntary Contribution (AVC) Scheme - transfer from Equitable Life to Utmost Life and Pensions
Equitable Life closed to new business in 2001 but the NHS Scotland AVC Scheme with Equitable Life remained open because it was established before the closure. As a result, members of the NHS Superannuation Scheme (Scotland) who had previously paid contributions to Equitable were permitted to continue in the AVC Scheme with them.
Update on McCloud – addressing age discrimination
On 25 March 2020 the Economic Secretary to the Treasury laid a Written Ministerial Statement before the UK Parliament to provide an update on the progress the government is making to address the discrimination identified by the Court of Appeal in the 2015 reforms in some of the public service pension schemes.
Court of Appeal Judgment - Armed Forces Compensation Scheme
The Court of Appeal has recently upheld an appeal by Mrs Jane Langford, the unmarried partner of Air Commodore Green who died in 2011. Under the rules of the Armed Forces Compensation Scheme (AFCS), Mrs Langford was unable to claim an unmarried partner benefit from the AFCS as she remained married at the time of AC Green’s Death. The Court of Appeal has ruled Mrs Langford should be eligible to receive benefits.
Changes to Survivor Benefits
SPPA is undertaking an exercise to identify any pensions paid to survivors of same sex marriages or civil partnerships and review those where the scheme member had pre 1988 (1990 in the police) service that was not used in the award. SPPA will contact individuals whose survivor pensions have been revised to arrange for the revised rate and any arrears to be put into payment. For further information please see your pension scheme circular which can be found under Scheme Governance and Legislation - circulars. Date added 2 July 2019.
UK Government appeal rejected by Supreme Court
Scottish Ministers respect the decision of the Supreme Court to refuse the UK Government’s appeal in the McCloud and Sargeant cases. Occupational pensions policy is reserved to the UK, and the UK Government is now required to make remedial proposals to the Employment Tribunal. We will publish more information as it becomes available. In the meantime, SPPA will continue to administer pension schemes in line with the existing regulations. Background
Mixed Sex Civil Partnerships
The Scottish Government announced on 25 June 2019 that it will introduce legislation both in the Scottish and UK Parliaments that will extend the availability of civil partnership to mixed sex couples. The date mixed sex civil partnerships will be available will be determined by the legislative timetable but SPPA will introduce changes to scheme regulations to reflect the change when introduced.
Scottish Teachers’ Pension Scheme - Late Change to Employer Contribution Increase
Following the latest scheme valuation, the employer contribution rate for the Scottish Teachers' pension scheme was set to increase from the current rate of 17.2% to 22.4% from 1 April 2019. The revised rate of 22.4% was scheduled to cover the period 1 April 2019 to 31 March 2023.
Public Service Pensions – Court of Appeal Case Valuations
We note the UK Government's announcement that, in the light of the recent Court of Appeal judgment, it has paused the cost cap valuations for public service pension schemes. We note also its decision to proceed with increases to employer contribution rates. We continue to press the UK Government to meet the full cost implications of the contribution rate change and we will keep in close touch with them to ensure that the interests of members and employers in the Scottish public sector are fully represented.