Pensions update as Treasury withdraws previous guidance

1 December 2021

The Federation has warned the Government that its withdrawal of previous guidelines regarding unfair discrimination caused by the 2015 pensions reforms must not further delay the settlement of pension claims by retired and serving members.

Her Majesty’s Treasury (HMT) yesterday issued an update advising public sector pension remedy claimants and schemes to halt claims until new legislation had been created to reduce the potential for tax consequences.

Previous Government advice made it clear Federation members who moved to reformed pension schemes on or after 1 April 2015 and retired were entitled to be treated as a member of their legacy scheme for the remedy period, if they wished.

However, the new HMT and Her Majesty’s Revenue and Customs (HMRC) advice on drafting the remedy through the McCloud Bill has now described the uncertainties caused by the Government’s original guidelines as “considerably greater than was previously thought”.

Find out more on the Police Federation of England and Wales website.

But West Midlands Police Federation interim secretary Tim Rogers has said West Midlands Police did the right thing by applying the immediate detriment option, with the Force pensions department working hard to give members the options they deserved at the point of retirement.

“This development was completely out of the department’s control and it is now unable, as we are, to decipher the next steps until the Government makes its next announcement. It is an undesirable set of circumstances meaning officers will retire on the wrong scheme and have to have this put right at a later date which seems ridiculous. It could also mean some officers are prevented from retiring at the time they wanted to and are forced to work on because of the financial consequences,” says Tim.

“I would just urge officers, who are understandably angry, not to call the pensions team and to try to be patient, as much as I appreciate that is difficult. There is very little the pensions department can do right now. Everyone is in the hands of the Government.”