police pension remedy update

7.4 While older officers were originally set to benefit from unlawful age discrimination, it was not their fault. See terms and conditions for further details. Ian Browne, retirement planning expert at Quilter, agreed that correcting the 'mistake' could "not have come at a worse time” for the government. PFNI and SANI, along with the other staff associations were successful in this application and will therefore be sighted and able to make representations on the proposed remedy. To be clear the reason for this application was so that we can be fully sighted on the proceedings which undoubtedly will have an impact on our membership. They can also choose to work beyond their NPA and receive a bigger pension”…. We agree and are pleased HM Government intend taking this approach. Parliament passed legislation such that that no benefits would be provided under the legacy schemes in relation to employment after 1 April 2015 but allowed for exceptions to be made that were short term in their nature, applying only to members who were within 10 years of their Normal Pension Age under the legacy schemes. Specifically, this could only be officers who joined the 2006 Scheme later in years, do not intend seeking promotion and are prepared to work beyond the NPA of the scheme, or officers who were awarded an enhanced ill-health retirement. It was the unlawful actions of HM Government that created this situation and officers should not be required to pay for that error by also having to pay the interest on these additional contributions. Such a ‘broad brush’ remedy to such a complex set of circumstances is bound to create massive disparity (as demonstrated above) between officers of different ages. 5.9 In this scenario, the 2015 CARE Scheme part of the officer’s pension is enhanced beyond that of the older officers who retired at the NPA of their origin scheme, but the officer can never get those six years back and it is doubtful she will live long enough to ‘recover’ the losses sustained to her 1987 pension. The older officer can draw their 2015 CARE Scheme pension immediately from day one (actuarially reduced by approximately 22%), whereas the younger officer has to wait until aged 55 to draw their 2015 CARE Scheme pension (even then, it will be actuarially reduced by approximately 50%). • The above examples use direct comparators – officers who accepted the same terms and conditions of the then pension scheme. I am aware that in some areas assumptions have incorrectly been arrived at, particularly around our engagement, communication and involvement with Government in relation to addressing the pensions concerns. The Financial Times and its journalism are subject to a self-regulation regime under the FT Editorial Code of Practice: www.ft.com/editorialcode. 6.2 Due to this proposed new date for transitioning from the original police pension schemes to the 2015 CARE Scheme, a significantly larger number of officers will now only be in the CARE scheme for a very short period of time. We also support the principle of the deferred choice underpin (DCU), allowing scheme members to decide at NPA whether they would have been better off within the 2015 CARE Scheme during the remedy period, or their original scheme (though, as HM Government’s own examples above clearly demonstrate, police officers do not require to wait until the end of their service to know they are better off under all circumstances in their original schemes during the remedy period). We would also question why HM Government has not considered allowing these officers a ‘value transfer’ option. Generally this will impact upon officers on the 2006 Scheme pension. However, the court rightly held it was not sufficient justification for age discrimination. By using our website you are consenting to our use of cookies in accordance with our cookie policy. Both then revert to the 2015 CARE Scheme in 2022. For more please click here, Follow us @PFEW_HQ for our latest updates, Read the latest edition of POLICE magazine, The Hub may not be available for some users, Find all the latest member discounts and services, A single place to find dedicated police charities within the UK, Offers available to stay at Police Federation HQ in Leatherhead 77-79 Garnerville RoadBelfastBT4 2NXNorthern Ireland, PFNI calls for urgent review of sentencing guidelines, PFNI will do all it can to support officers in Covid-19 outbreak, Holiday Pay Tribunal Update - 5th November 2018, Reaction by PFNI Chairperson, Mark Lindsay to PSNI Overtime Bill. Around 3m individuals could be affected, with the proposed changes expected to cost the exchequer £17bn. This could be evidence of further age discrimination, but either way is certainly an example of unfairness. 5.16 Turning to the ‘Public Service Pensions – Equality Impact Assessment’ (EIA), we are surprised to note there is no acknowledgement of the impact of this proposed remedy will have on younger police officers moving from pensions with NPAs based on service to pension with NPAs based on age. The bulletin contains updates on transitional protections remedy and NIC refund claims for FPS 2006 special members. – Should this proposed remedy be implemented, both older officers, who have now lost the protection they were afforded beyond April 2022 and younger officers who will now be transferred to CARE only briefly before they retire, will now have a case in terms of ‘reasonable expectation’ that they are being unfairly treated. Question 9: Does the proposal to close legacy schemes and move all active members who are not already in the reformed schemes into their respective reformed scheme from 1 April 2022 ensure equal treatment from that date onwards? 2. As things stand at present, unlike the Home Office on behalf of the UK Government, the Northern Ireland Office (via the Departments of Finance and Justice) have not yet conceded liability for age discrimination. 2. Although (as stated above) there can be no guarantees, the likelihood is younger officers will benefit from their pensions for longer than older officers, that was accepted by both the older and younger officer. We agreed with that summation at the time. We believe our response will be one of many and significant issues (beyond what we have highlighted), will be brought to HM Government’s attention. It was the unlawful actions of HM Government that created this situation and officers should not be worse off as a result. Most of the reformed schemes have a Normal Pension Age (NPA) linked to the member’s State Pension age (the age at which a State Pension can be received). This was an option available to 1987 Scheme memebrs, when police pensions changed in 2006. That number has now increased massively, with a significantly shortened notice period. Furthermore, is would be extremely unfair to use a ‘protected accrued benefit’ as justification for discriminating against younger officers. 1.2 Along with others, no longer part of our group, we co-ordinated a police response to privately and successfully challenge the unlawful changes made to police pensions in 2015, which has contributed to the need for HM Government to bring forward a proposed remedy. We are also surprised to read that by applying the proposed remedy, “equally to all those in scope”, HM Government believe that this action in some way ensures fairness. 10.6 We sincerely believe we have showed reasonableness in our response by recognising the benefits of pension reform and offering sensible counter proposals, to negate discrimination and unfairness being brought upon police officers. What evidence do you have on these matters? Likewise older officers can retire with 25 years’ pensionable service on the 1987 scheme, provided they have reached 50 years of age, however receive a much smaller lump sum. 9.6 There would be cost implications associated with these alternatives. 1. We strongly believe that all officers, who withdrew from existing police schemes (as a result of HM Government’s unlawful action), should be allowed to re-enter their original scheme, without penalty. • We believe the 2015 CARE Scheme pension is most likely fair and legal, and do not challenge the validity of that scheme for police officers who join it voluntarily, and where it is not linked to previous pension with different terms and conditions and NPA. These large sums are stark and suggest there may need to be further review and reform”. This is simply because that was the only area that was challenged, NOT because the 2015 CARE Scheme, and other elements of the wider transitional arrangements, were given a ‘clean bill of health’. – Police pensions, in comparison to other public sector schemes, are bearing a disproportionate burden in HM Government’s endeavour to ensure public sector pensions are sustainable for future generations. Although the rulings concerned judges and firefighters today's consultation set out plans to allow eligible members of the NHS, teachers, firefighters, police, armed forces and civil service pension schemes to choose whether to receive benefits from the legacy or reformed schemes for the period between April 2015 and March 2022. Chief Inspector Derek Hamilton – Police Service of Scotland, Inspector Robert Riddell – Greater Manchester Police, Sergeant Diane Armstrong (retired) – Police Service of Northern Ireland, Detective Constable Mike Lennin – Metropolitan Police, Constable Michelle Mooney – Police Service of Scotland, Constable Lee Broadbent – Greater Manchester Police. This is also good news as it effectively means that there is a clear expectation that the same benefits will be received for all officers who were discriminated against, without the need to submit a claim to receive this benefit. The 2015 reforms moved public sector pensions from a final salary to career average calculation of pension benefits and the consultation would allow members of most public sector pension … Tom Selby, senior analyst at AJ Bell, said this means each member could be due almost £6,000, at a time when public finances are already stretched due to Covid-19. Pension compensation deal will be '2020 at earliest' says hearing. L2 3PF 0151 305 2760, We treat all personal data in accordance with our, Government concedes defeat in legal battle over Police Pensions, Supreme Court refuses permission for Government to appeal on judges’ pensions. There was never any guarantee they would remain on the same scheme throughout, or with the same benefits as their predecessors, (unbeknown to most, it should be said, as they were informed ‘Section 2’ meant pensions could not be changed), but these younger officers rightly expecting parity of treatment with the older officers they joined with. Government plans to rectify a pension discrimination issue highlighted by two landmark court cases is expected to cost taxpayers £17bn. The Government has conceded defeat in a huge legal battle over police pensions, acknowledging that moving police officers to new police pension schemes, based on their age, was discriminatory. Question 20: Should interest be charged on amounts owed to schemes (such as member contributions) by members? 9.2 We also recognise there are many positives contained within the 2015 CARE Scheme pension, specifically lower paid workers are generally better off, standardising pensions should be beneficial to the employee in terms of ease of transference between public sector agencies, all of which will presumably lead to a reduction in overall administration costs.

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