FCS Briefing: Public sector pay awards and Pensions consultation

1. Public Sector pay awards 2020/21

On 21st July the government announced pay rises for parts of the public sector for 2020, backdated to 1st April 2020, including Armed Forces, teachers, police Officers, the National Crime Agency, prison Officers, doctors and dentists. Some NHS Agenda for Change staff have been asking “Why not us too?”. This is because the 2020/21 pay increase was already agreed in the AfC three year, pay restructuring deal – see
https://www.nhsemployers.org/pay-pensions-and-reward/agenda-for-change/payscales/annual

Mike Cornes, FCS Representative to NHS Staff Council

2. NHS Pensions 2015 Scheme Discrimination Remedy

This is commonly referred to as “the McCloud case”. HM Treasury has launched a consultation on the options for ensuring that NHS Pension Scheme members do not lose out as a result of the remedy required by the courts:

The courts ruled that the transitional protection arrangements for reformed public sector schemes in 2015 (like the NHS CARE Scheme) were discriminatory on grounds of age (i.e. they discriminated against younger members of the scheme).
The current consultation is about removing that discrimination and protecting the value of pension for those who might suffer loss as a result of the remedy.
Those who were in the pension scheme on or before 31/3/12 AND on or after 1/4/15 are covered. Those joining since 31/3/12 never had protection so suffered no discrimination.
The remedy period runs from 1/4/15 to 31/3/22. On 1/4/22 ALL scheme members will be placed into the 2015 CARE scheme.
For this period of time only members will be able to choose between their legacy arrangements (either the 1995 or 2008 sections of the scheme) or the reformed arrangements (the 2015 scheme).
The consultation is about WHEN this choice is to be offered – either “immediately” after 1/4/22 or when you retire. You are NOT being asked to make that choice yet.

Geoff Lester, FCS Representative to NHS Pension Scheme Advisory Board