Public Service Pensions

HM Treasury should: a) develop plans to address the impact of the administrative challenge that its proposals in response to the McCloud judgment will have for employers and scheme administrators, so any changes can be implemented whilst maintaining a good level of service for members;

b) resolve its concerns about the cost control mechanism and be open and transparent about the impact of any changes it makes for employers and scheme members;

c) in conjunction with the Cabinet Office, work closely with employers to understand how public service pensions can best support their workforce planning, to ensure pensions are an effective tool in recruiting and retaining the staff they need;

d) consider government’s overall approach to ensuring that employees understand their pensions, particularly for the three million scheme members affected by the McCloud judgment who will need reliable and timely information, including from scheme administrators, to make decisions about their retirement plans; and

e) consider whether broader performance measures, covering affordability and its other objectives, would give it greater assurance that it is delivering its objectives for public service pensions. For example, it could collect and analyse information regularly on the rate at which some groups are opting out of schemes.