Overview

This bill addresses unlawful discrimination in UK public service pension schemes, establishes new schemes for certain employees of banks brought into public ownership, and makes changes to judicial office holders' retirement and remuneration.

Description

The bill rectifies past discrimination by amending the Public Service Pensions Act 2013 and its Northern Ireland equivalent. It does this by:

• Defining "remediable service" as periods of service between specific dates (varying by scheme type) subject to specific eligibility criteria.
• Treating remediable service as pensionable under older, "legacy" schemes rather than newer schemes, where this is more beneficial to the member.
• Providing for corrections to pension benefits and contributions, ensuring members are neither overpaid nor underpaid due to the changes. This involves elections by members to receive benefits under either the legacy scheme or the new scheme.
• Granting powers to reduce or waive liabilities in special cases and to pay compensation for losses due to the changes.
• Requiring scheme managers to provide detailed statements about remediable service to affected members.

The bill also creates new public pension schemes for members of occupational pension schemes in bodies nationalized under the Banking (Special Provisions) Act 2008 (e.g., Bradford & Bingley and Northern Rock).

Finally, the bill alters the retirement age for various judicial office holders to 75 and introduces provisions for "sitting in retirement offices" allowing retired judges to continue hearing cases under certain circumstances.

Government Spending

The bill's impact on government spending is not explicitly stated with figures. However, it involves significant potential costs associated with compensating members for past discriminatory practices and adjusting pension payments and contributions. The cost will vary greatly according to the choices made by those affected.

Groups Affected

The bill impacts several groups:

• Public service pension scheme members: Those with "remediable service" may see changes to their pension benefits and contributions, potentially leading to increased or decreased payments.
• Employees of nationalized banks: Members of the Bradford & Bingley and NRAM pension schemes will transition to new public schemes.
• Judicial office holders: Retirement ages are changed, and new provisions govern "sitting in retirement" roles.
• UK Government: Increased spending may be required due to compensation and benefit adjustments.
• Employers: They may be required to reimburse the scheme manager for compensation payments.

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