It is essential in any democracy that you take the opportunity to have your say. Nothing is more vital to your future than the security of your pension. Soon, the Government are to launch a consultation on the McCloud judgement, which found there to be discrimination within pension changes that cam in 2015. The consultation was intended for earlier this year but was paused due to the COVID-19 pandemic. However, there are serious moves now to bring this consultation to those impacted, seeking opinion on proposals.
What is the McCloud Judgement?
Firefighters and judges took the Government to caught over inherent discrimination in the changes made to public pensions. The same inequalities are also evident with the Teachers’ Pension Scheme. In 2018, the Court of Appeal upheld a decision in favour of the firefighters and judges. They agreed that the changes to the pensions constituted unlawful age discrimination. The appeal judges also confirmed that this ruling would apply across all public sector schemes. Consequently, even though teachers were not part of this case, they will be positively impacted by the judgement too.
What was the age discrimination?
The stipulation in the 2015 changes to pensions that caused so many problems was that older professionals could stay in the existing scheme. This sounds all well and good for these older members. However, those below the age threshold were transferred to a new and much less valuable plan. The result for younger members is a noticeable financial loss.
What has been happening?
The judgement has caused a degree of uncertainty in pensions. For instance, the valuations for the public sector pension schemes have been paused since 2019. The Government claim that: “the cost control mechanism remains pauses as the value of pension schemes to members cannot be assessed with certainty.” Also, there have been employment tribunals to help to come to a conclusion about possible remedies for claimants. Be aware; the Government has confirmed that your entitlements are safe and any changes to the pension will be to remove discrimination for those affected.
Therefore, the proposed public consultation is another step in working out how to redress discerned discrimination. Keep an eye on gov.com for your chance to have your say and protect future benefits.
The content in this article was correct on 4th July 2020. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on pensions for teachers and non-teachers. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.