On the 15th July 2019, the Chief Secretary to the Treasure announced that people should be protected in their desire to move pensions from one scheme to another. The transitional protection had previously only been offered to specific members of the judicial and firefighters’ pension scheme, which led to the unlawful discrimination of other pension holders. Consequently, the Chief Secretary to the Treasury wrote a ministerial statement confirming that this protection is offered to all members of all public service pension schemes.
What if you have a public pension, but you are not a judge or a firefighter?
McCloud ruled on the case brought before the tribunal, which happened to be in respect of the judges’ and the firefighters’ pension. However, the government confirmed that the changes brought about by the decision will apply to all members in relevant public service, not just those who have lodged legal claims. Consequently, the ruling impacts all public service pensions.
When will this impact my pension?
The remedies and compensations brought about because of the ruling are complex. The government have acknowledged that it will take some time before the full details of effects will be known. The legal processes are still progressing, and any remedy will be influenced by their conclusion.
This delay, as the complexities are worked out, means that your pension, if you are retiring soon, is likely to be unaffected. However, if there are subsequent changes, you will be informed by your pension provider. You should make sure your details are up to date on My Pension Online.
Is my pension safe?
When there are significant changes to pension law, it is easy to worry that your future security is under threat. However, you should feel assured that the pension you have accrued to date is perfectly safe. While there will be changes to the Teacher Pension Scheme, the government have been transparent that there will be no reduction in the benefits accrued or the pension received.
The content in this article was correct on 10th March 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.
