Government must pay for pension discrimination not scheme members

16 Jul 2020

The government has today (16 July) announced that the cost of the remedy for age discrimination in the civil service pension schemes will be funded from members' contributions. PCS has consistently argued that the government was to blame for the age discrimination and should fund the remedy.

18 months ago the government paused the pension valuation of the civil service pension scheme, which showed that many civil servants were overpaying pension contributions by 2% a year. The government has lifted the pause of the pensions valuation and cost cap for all public service pensions. This now allows for a possible reduction in members` contributions. However, if costs of the remedy for correcting the unlawful age discrimination imposed in the new pension scheme from 2015 are to be included then this may impact on any contribution reduction.

We have demanded an urgent meeting with the Cabinet Office to discuss this announcement.

PCS General Secretary Mark Serwotka said: “PCS had always argued that the costs of correcting the unlawful age discrimination should be borne by the government, not our members. The government must accept that they are culpable for this discrimination, and shoulder the impact of not applying the law correctly. Instead they expect many poorly-paid PCS members to take the consequences."

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