Sixth Report - Public Sector Pensions

The government agreed with the recommendation, stating it already provides advance notice and support, and confirmed it is consulting on the SCAPE discount rate methodology with a new rate to be set for April 2024, proposing to align future reviews with the valuation cycle.

The government accepted the recommendation, stating it will commission departments to analyse latest participation data, work to standardise data collection, and request updates on measures to improve participation to inform efforts to promote pension value, with a target date of March 2022.

The government explicitly rejected the recommendation, arguing that pension differences are due to past earnings, not pension provision itself. While supporting the collection of data on drivers like the gender pay gap, it deemed collecting protected characteristics data for pension gaps irrelevant for scheme valuations and inappropriate for retrospective review.

The government accepted the recommendation, outlining current legislative actions for the McCloud judgment via a new Bill and detailing steps to address the cost control mechanism, including waiving 2016 valuation ceiling breaches and consulting on future changes. It also committed to providing an update in six months.

The government accepted the recommendation to provide an interim evaluation by the end of 2021, committing to write to the Committee with an assessment of its objectives. However, it noted this assessment would be necessarily limited as the 2011-2015 reforms are still in the process of full implementation.

The government response reiterated the committee's opening statement about taking evidence and confirmed the report publication and the nature of the current document.

The government response reiterated the factual background of the public service pension reforms, including the McCloud judgment and its finding that transitional protections were discriminatory.

The government affirmed its commitment to legislate to remedy the McCloud judgment discrimination and noted that the Public Service Pensions and Judicial Offices Bill was introduced in July 2021, reiterating the ongoing actions described by the committee.

The government detailed actions being taken to address issues with the cost control mechanism, including publishing amending Directions for 2016 valuations, waiving ceiling breaches, delivering floor breaches, and initiating discussions with Scheme Advisory Boards to rectify these.

The government is addressing the cost control mechanism flaws by waiving ceiling breaches from 2016 valuations, delivering floor breaches, and has launched a consultation on changes to be implemented before the 2020 valuations.

The government's response states its belief that the 2015 public service pension reforms meet objectives and that it is focusing on completing their implementation, without addressing the committee's finding that trust between stakeholders has been undermined.

The government reiterated its belief that 2015 reforms meet objectives and is focused on completing implementation, but did not address the committee's observation about substantial issues arising just six years into a supposed 25-year commitment, or concerns about long-term sustainability.

The government agrees to conduct an assessment of how it is meeting its public service pension objectives by the end of 2021, but notes this assessment will be limited until the 2011-2015 reforms are fully implemented.

The government reiterated its belief that 2015 reforms meet objectives and is focused on completing implementation, but did not address the committee's note that HM Treasury acknowledged a future need for detailed evaluation.

The government stated that individual departments are responsible for assessing where public service schemes need changes to meet workforce needs, with HM Treasury assessing proposals, thereby redirecting responsibility for the specific concerns about doctors' working patterns.

The government described the quadrennial valuation process for determining employer contribution rates, with the current valuation underway, but did not address the committee's observation about the specific £1.7 billion increase funded by employer budgets and its impact on frontline services.

The government explained that employer contribution rates are determined by four-yearly valuations, with the March 2020 valuations currently underway. It did not address the committee's specific concern about independent schools withdrawing from the Teachers' Pension Scheme or the pressure on remaining schools.

The government described the general quadrennial valuation process for employer contribution rates, with current valuations underway, but did not specifically confirm or elaborate on the stated review of the SCAPE discount rate and its methodology prior to 2024.

The government accepts the recommendation, agreeing to commission departments for participation data analysis, standardise data collection, and request updates on measures to promote the value of public service pensions to employees by March 2022.

The government outlined the 'deferred choice underpin' introduced in the Bill, allowing members to make choices about their benefits at retirement to simplify the complex decision-making related to the McCloud judgment.

The government accepted the recommendation, stating it will commission departments for analysis of participation data, work to standardise data collection including by member characteristics, and request updates on measures to improve participation, aiming for implementation by March 2022.

The government accepts the recommendation, committing to commission departments for detailed participation data analysis, standardise data collection by member characteristics, and gather updates on measures to improve participation by March 2022.

The government acknowledges the gender pension gap, attributing it to historical pay differences and existing pay gap reporting, and stating it agrees on the importance of collecting and analysing data on the drivers of these differences.

The government acknowledges the importance of collecting and analysing data on the drivers of pension differences, but highlights practical challenges and data protection regulations regarding collecting data on protected characteristics beyond age and gender.

The government stated that individual departments are responsible for assessing scheme changes to meet specific workforce needs, with HM Treasury assessing proposals for legal and fiscal implications, thereby redirecting primary responsibility.