Assessing Public Sector Pensions
Quantifying pension losses for members of public sector schemes is complex given the nuances of different schemes.
Since the ruling on the McCloud Judgment was made December 2018 there are additional considerations for solicitors to be alive to when assessing pension losses for members of public sector schemes.
Who does this affect?
- Claimants who are members of public sector pension schemes in employment before 31st March 2012, and were still in employment on 1st April 2015 (or 1st April 2014 for LGPS).
- This doesn’t necessarily need to be a continuous period of employment. This also applies to Claimants who have since left employment, or who have started receiving their pensions, so long as they were employed on the above relevant dates.
How does it affect cases?
- A comparison of claimants’ benefits in their current career average pension versus their potential benefits had they remained final salary members will be required for almost all public sector pension loss cases meaning that both projected and residual benefits will need to be considered in both schemes.
- For Claimants who have already retired, their actual pension benefits may be increased to take account of these changes – therefore a calculation of their revised actual pension benefits may also be required, in addition to a calculation of their projected pension benefits.
Current position:
- Claimants in active service will move to a career average scheme from 1st April 2022.
- When Claimants who haven’t already retired, or aren’t planning to retire in the near future, approach retirement they will be provided with details of their possible pension benefits accrued between 1st April 2015 (or 1st April 2014 for LGPS) and 31st March 2022, in both the legacy scheme (final salary) and the new scheme (career average) and they can choose which benefits to receive.
- For Claimants who have already retired or will do so in the near future, this choice will be offered as soon as practicable, and any changes to pension benefits should be backdated.
How can we help?
As most Claimants will want to seek to optimise their benefits, this may increase the amount of pension loss claimed in some cases.
This is particularly relevant to Claimants who are now approaching retirement age or where they were in the early phases of their employment in 2012.
There is no straightforward indicator of who will be better off under each part of the scheme, so a comparison calculation will be needed in all cases where the Claimant was a member of a public sector scheme in the relevant period to ensure that losses are not understated.
For more information about hourly rates and deferred payment terms, please contact us today.
We assist in all types of Personal Injury and Clinical Negligence cases. To discuss any of the following scenarios under no obligation.
Self Employed Claimants –
CLICK HERE
Pension Loss (Public or Private Sector Claimants) –
CLICK HERE
Fatal Cases –
CLICK HERE
Call us on 0113 387 5670