Pensions update for defence members in the public and private sector

Neil Walsh, Prospect Pensions Officer, has been tracking the latest developments on pensions for defence members in the public and private sectors.

Public sector pensions

The Ministry of Defence has started paying interest-free loans of £5,000 (up to £10,000 where need is demonstrated) to partially and fully retired civil servants who have been affected by delays caused by serious problems with administration of the Civil Service Pension Scheme.

Interventions by Prospect and the other civil service trade unions have ensured that loans for the full amount will be advanced to everyone affected who applies for one.

While there has been a step-change improvement in administration performance since the start of the year, we are still far from the point where members can be confident that they will receive their pension if they put in their notice to retire.

Prospect is continuing to push for further improvements and also for appropriate compensation.

Members of the civil service scheme should  bookmark the following page and check it for further updates:

Civil Service Pension Scheme administration problems | Prospect

Private sector pensions

The government’s National Insurance Contributions (Employer Pensions Contributions) Bill would give it the power to cap the amount of salary sacrificed pension contributions that do not attract employee or employer National Insurance contributions at £2,000.

Prospect has submitted detailed briefings about the potential impact of this Bill to MPs and Lords as it has progressed through Parliament. It would have a detrimental impact (either directly or indirectly) on almost all private sector members in the Defence sector.

More than a thousand Prospect members across different sectors have supported our lobbying efforts by writing to their MP about it, please consider doing so as well (if you have not done so already):

National Insurance Contributions Bill – Pension Salary Sacrifice Changes