The Public Service Pensions Bill, published in September, provides a common legislative framework for all public sector pension schemes and is intended to deliver £65 billion of savings from public sector pension reform over the next 50 years.
Total savings over this period from the Government’s overall package of public sector pension reforms are estimated at £430 billion,1 which also includes big savings from higher employee contributions and the decision to uprate public service pensions by the Consumer Price Index (CPI) rather than the Retail Price Index (RPI). All these savings come directly out of the pockets of public service workers.
The BMA believes there is no justification for the scale of the planned changes or the speed at which they are to be implemented. Crucially, the proposed new legislation will entrench significant disparities across and within public sector schemes. These important issues of unfairness should instead be addressed as part of any reform intended to create a more coherent approach to public sector pensions.