The FBU, with other public service unions as interested parties, recently took the government to court yet again over its 2013 public service pensions changes.
Part of the judicial review case was that the government has, without parliamentary oversight, attempted to shift to members of pension schemes the cost of putting right the discrimination in the changes.
The “McCloud remedy” – named after a court of appeal judgement, McCloud v Ministry of Justice – is designed to put right the effects of discrimination in the changes of 2013.
However, the government included the costs of this remedy in the “cost control mechanism”, established by the Public Services Pensions Act 2013, which allows it to take steps to control the costs of public sector pension schemes.
A 2016 valuation showed public sector pensions were cheaper than expected and should have led to improved benefits for members.
But, by including the full cost of the McCloud remedy in control mechanism calculations, these benefits disappear.
Younger members of the new pension schemes will be 4.9% worse off if the government succeeds in this approach.
The union told the court to consider that the government’s actions breach commitments made in legislation and contravene the purpose of the cost control mechanism, and so discriminate against younger members.
A ruling is expected within two or three months.
■ bit.ly/FBU-McCloud-JR
