Key Facts

• The conversion of Bradford & Bingley from a public limited company to a private limited company occurred in October 2021.
• Amendments will allow for the transfer of pension liabilities residing under Bradford & Bingley to the Treasury.
• The amendments are part of clauses 104, 105, and 106 of the Bill.
• Amendment 48 corrects a cross-referencing error in schedule 1.
• The retirement age for judges will be raised to 75 years old.
• The Lord Chancellor has powers to reinstate retired magistrates below the new mandatory retirement age if there is business need.
• Around 2,000 extra magistrates and 400 extra judges are expected annually with the new measures.
• Schedule 3 lists existing judicial offices for which sitting in retirement offices will be created.
• Clause 116 introduces technical changes to existing legislation.
• Amendment 43 clarifies that clause 117 does not apply to regulations under chapter 3 concerning local government schemes.
• Chapter 3 of Part 1 (local government) is set to come into force on 1 October 2023 unless regulations appoint an earlier date.
• Amendments are being made to Section 12 of PSPA 2013 and corresponding provisions in Northern Ireland.
• A one-year compliance period is required after the scheme’s first valuation under section 11 is completed.
• Economic checks and reforms for scheme-only design starting from 2020 valuations are included.
• New Clause 2 modifies provisions in PSPA 2013 and PSPA(NI) 2014 regarding employer cost caps for the 2016/17 valuation.
• New Clause 3 defines 'remediable service' with specific conditions related to pensionable service under legacy schemes and disqualifying gaps.
• New Clause 4 introduces a power to pay final salary benefits in local government new schemes.
• The amendments replace clause 78 with new clauses enabling local government schemes to pay final salary benefits in multiple employments.
• New Clause 5 clarifies that scheme regulations may require members to transfer service into the scheme for final salary benefits.
• New Clause 6 introduces transitional provisions for existing pension scheme regulations before the Power to Pay Final Salary Benefits provision comes into force.
• New Clause 7 enables local government schemes to adjust pension credits and debits arising from divorce or civil partnership termination.
• New Clause 8 enables local government schemes to pay compensation for compensatable losses.
• New Clause 9 allows indirect compensation for Part 4 tax losses.
• New Clause 10 confers power on local government schemes to make provisions about interest calculation and payment process.
• New Clause 11 requires certain powers relating to local government schemes to be exercised in accordance with Treasury directions.
• New Clause 12 inserts a clause about the interpretation of new provisions in Chapter 3.
• New Clause 13 removes Senedd pension schemes from cost control and disapplying the Treasury veto over establishing or varying such schemes.
• New Clause 14 requires the Chancellor to review and report on compensation for losses incurred by closure of legacy schemes within two months.
• Police and fire service pensions operate differently from other public sector schemes based on a 30-year service record.
• Members may lose benefits due to a higher retirement age brought in under the new pension schemes between 2015 and 2022.
• Lord Davies of Brixton proposed amendments regarding the issue during the Bill’s passage through the House of Lords.
• The Home Office has consulted on detailed regulations for the police pension scheme.
• The Independent Public Service Pensions Commission stated that allowing current members to continue accruing benefits in present schemes would be unfair and inequitable to new members.
• Based on ONS data, 6.3 million public sector workers participate in valuable schemes compared to only 0.7 million private sector workers.
• Simon Clarke thanked all involved for their work on the Bill.
• The Committee voted with Ayes 6, Noes 10.
• Tulip Siddiq expressed broad support for the Bill despite losing votes.