Age discrimination remedy
In 2015 when the Government of the day introduced the CARE pension scheme, the regulations allowed anyone in the pension scheme, within 10 years of retirement, protection. These protections were found to be age discriminatory.
The Government is rectifying this through the age discrimination remedy, which will ensure that members receive the best pension benefits they could have accrued, based on their service in either the CARE scheme or the previous scheme for their service from 1st April 2014 to 31st March 2022, regardless of when they transitioned to the CARE scheme.
LGPS members joined the career average scheme in April 2014, members who met certain qualifying criteria (including that they had been within ten years of their final salary scheme normal pension age on 1st April 2012) gained statutory underpin protection.
Underpin protection means additional checks are undertaken for protected members with the intent of ensuring that the career average pension payable under the reformed LGPS is at least as high as the member would have been due under the final salary scheme
By contrast, the career average scheme was introduced in April 2015, when older members of the fire & police pension schemes who met the criteria for transitional protection stayed in their final salary schemes.
Going forwards all eligible members will be able to choose legacy scheme benefits or reformed scheme benefits for the whole remedy period.
Remedy
The discrimination needs to be remedied.
From 1 April 2022, the period of underpin protection ceased and all active LGPS members now accrue benefits in the career average scheme, without a continuing final salary underpin From 1 April 2022 all active fire & police members were moved into their relevant reformed scheme.
LGPS Remedy
Those who were in service on 31st March 2012 and were within ten years of NPA on 1st April 2012 currently benefit from the Underpin protections. Extend the Underpin to those who were in service on 31st March 2012 and were more than ten years from NPA – ensuring no member would be worse off
Fire & Police Pension Schemes
By contrast, the career average scheme was introduced in April 2015, when older members of the fire & police pension schemes who met the criteria for transitional protection stayed in their final salary schemes. Protected members would be able to choose legacy scheme benefits or reformed scheme benefits for the whole remedy period.
Fire & Police Remedy
Active & Deferred – Offer each member a choice of whether their benefits accrued, in the remedy period, are calculated as final salary or CARE benefits. [Deferred Choice]
Pensioner / Deceased / Transferred Out – Revisit the benefit calculations and remediate where necessary. [Immediate Choice]
