We are aware of a very small number of members who decided to opt-out of their pension scheme instead of transferring to the 2015 scheme. In the civil service this will also include members who switched to the non-contributory defined contribution Partnership scheme.
The Treasury consultation from last summer outlined a proposed approach for contingent decisions with the response published in February 2021 providing additional information. This outlined that there will be a process for members to highlight they made contingent decisions as a result of the discrimination and request to be put in the situation they would have been in had the discrimination not occurred. Members will need to show that this decision was as a result of being moved into the 2015 scheme. Decisions on these cases will be made on a case by case basis.
You can read the full response from HM Treasury on contingent decisions on pages 55 to 57 of the McCloud consultation response here.
Each scheme has a scheme advisory board that will discuss implementation and administration of the remedy for their scheme. We are awaiting further information on how members who’ve made contingent decisions will be able to apply for consideration to be put back into the position they would have been in had the discrimination not occurred. If approved members would need to be prepared to make back-payment of employee pension contributions.
In the Civil Service, planning is at an early stage and we do not currently have any additional information on the process for raising contingent decision issues. As a union we will look at how we can support members who would like to go through this process.
It is important to note that we recommend members get independent financial advice before making important financial decisions such as opting-out or switching to Partnership.
When members move to the 2015 schemes all accrued rights are protected and only benefits built up after joining the new scheme have a pension age of state pension age (or 60 for active members in Fire service). It is important to note that whilst the reformed schemes have a higher pension age, the new schemes provide a valuable benefit and in certain circumstances, members could receive a higher level of pension in the reformed scheme than their original scheme.