The government has launched a consultation seeking views on its proposals on how it will continue to provide full indexation of public service pensions, including any GMP element.
The proposals in the consultation - launched today (7 October) - are particularly in relation to members who reach state pension age after 5 April 2021.
The introduction of the new state pension in 2016 removed the mechanism that enabled public servants in contracted-out employment between 1978 and 1997 to have their GMP elements fully price protected.
This consultation proposes to ensure the government continues to meet these past commitments to public service employees and considers the policy options available to the government.
These options include: the extension of full indexation to cover those reaching state pension age up to 5 April 2024; the extension of full indexation to cover those reaching state pension age beyond 5 April 2024; and discount conversion as a long-term policy solution and make full GMP indexation the permanent solution for public service pension schemes.
The consultation asks whether respondents consider an extension of full indexation until April 2024 to be appropriate to ensure that the government can meet its existing commitments, whether the government should extend full indexation and how long for if so, and whether the most appropriate solution is for the government to consider making full GMP indexation the permanent solution for all members due to reach state pension age after 5 April 2021.
The consultation closes to responses on 30 December 2020 and the government will announce a policy decision in 2021.
Capita has appointed Stuart Heatley as the managing director of its pensions business to succeed Nigel Purveur.
Barnett Waddingham’s Paul Latimer considers the year ahead
Pension administration firm Trafalgar House has been appointed by the Siemens Benefits Scheme and the Siemens Healthineers Benefits Scheme.
While the dashboard timeline needs to be flexible enough to help the least well-prepared schemes get ready, Nigel Peaple says schemes are being constructive and solution-focused.
Alan Casey sets out how schemes can use HMRC GMP listings even where they are riddled with errors