Labour Research (August 2022)

News

Pensions legal victory

The FBU firefighters’ union has won permission for a major judicial review into who pays for costs arising from 2015 changes to public sector pension schemes.


In 2015, the coalition government introduced new public sector pension schemes which, in most cases, were substantially worse than the existing schemes. 


It introduced them in a discriminatory way, on age grounds, according to a 2019 case brought by the FBU, and the changes must be reversed. The government estimates the cost of this at £17 billion, and unions say it has tried to use savings from the schemes to pay for its discrimination, rather than passing those savings on to members.


The FBU is leading the judicial review as it specifically relates to the firefighters’ pension scheme. 


The GMB and Unite general, PCS public and commercial services, RCN nurses’ and POA prison officers’ unions are also named as interested parties as the outcome will have implications for the wider public sector. 


A claim by the BMA doctors’ union overlaps with this case and the two will be heard together in the High Court in November 2022. 


The unions are challenging the government’s action on the basis that it breaches commitments given to them when the 2015 schemes were introduced; contravenes the purpose of the cost control mechanism introduced in 2015, which would have led to contribution reductions, benefit improvements or both; and, once again, discriminates against younger scheme members.


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