Key Facts

• The Committee will meet at specified times on January 27 and February 1, 2022.
• Written evidence received by the Committee shall be reported to the House for publication.
• Amendments are grouped together based on similar issues for debate.
• The Bill covers more than 40 schemes.
• Each scheme has its own layers of detail and complexity.
• Amendments address retrospective changes for occupational pension schemes.
• Condition three in Clause 1 refers to membership or eligibility before 31 March 2012.
• A disqualifying break in service is defined as a period of more than five years.
• Amendment 2 updates the second condition in chapter 1 to cover excess teacher service.
• Amendment 3 ensures that former local government staff who were compulsorily transferred from their employer due to outsourcing retain pension rights.
• The deferred choice underpin (DCU) was selected as the remedy for discrimination in new pension schemes established between 2014 and 2016.
• Trade unions have concerns about the lack of clarity on how the £17 billion cost of the remedy will impact future value of members' pension schemes.
• The Public Accounts Committee warned that including the cost in future valuations would unfairly penalize public sector workers.
• Members of the public are reminded that these schemes are pay-as-you-go pension schemes, not wholly underwritten by the Government.
• The Minister clarifies that transitional protections were inserted at the request of trade unions after Lord Hutton's recommendations.
• The MP challenges the Minister to accept responsibility for the regulations that were found unlawful.
• Clause 2 implements a retrospective remedy for pensionable service.
• Clause 3 ensures that benefits already paid are aligned with the appropriate legacy scheme.
• The amendments aim to provide robust remedies and address concerns raised by stakeholders.
• Clause 5 requires scheme regulations to allow reinstatement of opted-out service.
• Members can elect for their service to be reinstated if they satisfy specified conditions.
• The period covered is from April 2015 to March 2022.
• Clause 10 provides a deferred choice to receive legacy or new scheme benefits for active and deferred members.
• Clauses 14 to 18 address the correction of overpayments/underpayments, alignment of member contributions, and reduction/waiver of liabilities.
• The clauses ensure that pensioners are returned in the correct position net of tax.
• Amendment 6 protects child pensions where a member has died.
• Amendments 10 and 11 define 'adult survivor' and 'child'.
• Amendment 7 extends power for teachers' excess service cases.
• Amendment 8 provides powers to deal with partnership pension accounts if the member has passed away.
• Amendment 9 allows members made redundant to make their deferred choice at employment end.
• Amendments enable provision about benefits payable to surviving children who do not live with adult survivors.
• Government amendments allow for provisions regarding redundant teachers and those with partnership pension accounts.
• Clause 23 provides power for scheme managers to pay compensation for losses incurred due to discrimination.
• Treasury directions will be used to ensure consistency in treatment across different schemes.
• Clauses 31 and 32 are discussed.
• Clause 31 prevents duplication of compensation in immediate detriment cases.
• Clause 32 defines conditions for obtaining an immediate detriment remedy.
• Clauses 34 to 50 are discussed in relation to judicial pensions.
• Clause 39 amendments ensure accurate identification of remediable service.
• Clauses 40 to 46 relate to the judicial options exercise and election conditions.
• Clauses 51 to 68 address corrections for paid pension benefits.
• Clause 57 provides power for the Ministry of Justice regarding pension credit members in divorce cases.
• Clause 59 enables compensation for losses incurred due to discrimination.
• Clauses 61 and 62 allow judicial schemes to apply interest to amounts owed or by members.
• Amendments 20 and 21 ensure consultation requirements are consistent across jurisdictions.
• Clause 69 defines the meaning of “the election period”.
• Amendment 22 moves a definition from clause 75 to clause 98.
• Clauses 70 to 74, and 75 and 76 are ordered to stand part of the Bill.
• The amendments relate to chapter 3 of the Bill concerning discrimination in local government pension schemes.
• Policy consultations were undertaken for local government in 2020.
• Local government scheme members moved to reformed career average schemes from April 1, 2014, in England and Wales, and April 1, 2015, in Scotland and Northern Ireland.
• The amendments aim to ensure that younger workers who were not originally protected receive statutory underpin protection.
• New clauses provide equivalent powers for local government schemes as those already existing for other public service pension schemes.
• Amendments 25 and 26 are introduced to clarify the status of local government pension schemes.
• Subsections (4A) are added to sections 8 of both PSPA 2013 and PSPA(NI) 2014.
• The amendments aim to ensure that scheme regulations do not affect the career average revalued earnings status.
• The Independent Public Service Pensions Commission recommended a mechanism in 2011.
• The Government introduced a symmetrical mechanism that maintains pension values when costs fall.
• In June 2021, the Government Actuary published recommendations to improve the mechanism.
• New clause 1 sets legislative framework for two reforms: reformed scheme only design and economic check.
• The economic check ensures consistency between benefit changes and wider economic outlook.
• Secondary legislation will implement widening of the cost corridor in due course.
• Labour broadly supports widening the margin of the cost corridor from 2% to 3%.
• The Government's proposal for an economic check appears to breach a 25-year guarantee given by the Treasury in November 2011.
• TUC, National Education Union and PRS have warned that proposals unfairly penalise pension scheme members.
• Clause 87 amends the Public Service Pensions Act 2013 to reflect that the Secret Intelligence Service and Security Service pension schemes have a closing date of 31 March 2016.
• Clause 88 allows for devolved judicial office holders to be added to the new, reformed judicial pension scheme in response to requests from Scottish Ministers or the Department of Justice.
• New clause 13 removes the requirement for Treasury consent before a new Senedd pension scheme can be provided or an existing one modified.
• Clause 90 allows the Government to make regulations for creating a compensation scheme for relevant members.
• Amendment 27 agreed to.
• Amendments 28 to 32 extend powers of the Treasury and Department of Finance to include local government schemes.
• Clause 91 provides power for the Department of Finance in Northern Ireland to create compensation schemes.
• Clause 92 provides power for scheme regulations related to fee-paid judges not covered by McCloud judgments.
• Clause 93 enables HMRC information-sharing and extends criminal offense provisions.
• Clause 94 disapplicates section 91 of the Pensions Act 1995 and article 89 of the Pensions (Northern Ireland) Order 1995 to ensure benefits may be surrendered under certain clauses.
• Clause 97 defines key member types in the bill.
• Amendment 33 inserts a definition for “connected” within the context of PSPA 2013 and PSPA(NI) 2014.
• Amendments 34 to 38 define additional terms such as 'excess teacher service', 'Fair Deal scheme', and 'local government contracting-out transfer'.