This means that employer contribution rates for those employers participating in the NHS Pension Scheme, the Teachers’ Pension Scheme and the Civil Service Pension Scheme are likely to rise from 2015.
The Government believes that the shortfall across these three schemes is likely to amount to nearly £1 billion per year. The final valuations are due to be published over the coming months. The new contribution rate will be then be decided.
The Government has also outlined details of a new cost-capping mechanism which will operate in all public sector pension schemes from 2015 (or 2016 for the Local Government Pension Scheme). The cost cap is only partial, relating to future service costs. It also only applies to costs which relate to members such as changes in life expectancy, salary growths or career paths but not due to financial performance or technical valuation changes. Where costs rise or fall by more than 2% then member benefits or contributions may be adjusted in order to return costs to the level of the cap.
The Local Government Pension Scheme is also implementing an additional cost control mechanism in order to try to ensure that employer contribution rates are as constant as possible. This mechanism is likely to operate in a similar way to the mechanism outlined earlier with a proposed cap of 19.5% of pensionable payroll.
If you have any questions relating to these proposals or to public sector pension schemes more generally, please contract Doug Mullen on 0121 212 7432 or douglas.mullen@anthonycollins.com.
The monthly round-up from the Anthony Collins Solicitors charities team.
In this ebriefing, we identify what we see as the key messages arising from recent prosecutions in the care and housing sectors.
A recent High Court case on costs could prove essential reading for clients who have cases in the magistrates' courts.
The employment and pensions team offer practical advice on whistleblowing.
Partners, David Alcock and Sarah Patrice, have been involved in reviewing the new Code of Governance for community-led housing, published on 21 May 2021 by the Confederation for Coop Housing.
Following the eviction ban being lifted on 31 May 2021 and further to our previous ebriefing, the new notice of seeking possession forms are now available on the Government website as Word versions.
The European Court of Justice's standpoint on the Wiener Wohnen landowning developer case, and how the level of influence over the work did not amount to a decisive influence.
The Law Commission's Technical Issues in Charity Law report revealed that many charities struggle with a range of technical issue in the law.
The Law Commission recommended four key changes to the law in respect of mergers and the incorporation of charities which we have detailed in this ebriefing.
Over the last few weeks, we have published individual ebriefings on some of the key changes to be implemented following the Government’s response to the Law Commission’s report.
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