Sixty Second Summary
Caps, cycles and pain: public service pensions race continues
31 Oct 2018 - Estimated reading time: 1 min
The terms ‘caps’, ‘cycles’ and ‘pain’ may make you think of the Tour de France, but this Sixty Second Summary note is about something much longer and more gruelling: assessing the cost of the various public service pension schemes (including Local Government).
Minutes from the October Scheme Advisory Board meeting provided an update on the results of their ‘Cost Cap’ calculations. As a reminder, the cost cap is part of the package of measures following Lord Hutton’s review of public sector pensions in 2011 to monitor the ongoing cost of providing benefits. Its stated aim is ‘to ensure affordable and sustainable public sector pensions’ and it is enshrined in legislation via the Public Service Pensions Act 2013. The ‘cost cap’ calculations are carried out by the Government Actuary’s Department (GAD) – all LGPS funds have provided data to GAD but have no control over the subsequent calculations or results.
This is very much a hot topic and we expect further information to be available in the coming months, if not weeks. We will continue to keep you up to date, but if you have any queries in the meantime please contact your usual Hymans Robertson consultant.