Superannuation Bill

Memorandum submitted by Mike Wicksteed (SU 35)

Background

1. I'm a 63 year-old member of the senior civil service (SCS) graded as SCS1. I joined the civil service in 1990 and have accrued pensionable service of 20 years.

2. The Employment Equality (Age) Regulations 2006, implementing EU legislation, came into effect on 1 October 2006, making it unlawful for employers and others to discriminate against a person on the basis of his/her age.

3. In April 2010 the upper limit of 65 years of age on service within the SCS was removed – that for the wider civil service having been removed at an earlier date.

4. The current maximum capped payment to those opting to retire over the age of 60 is equivalent to six month’s pensionable earnings. This would appear to be based on the understanding that those over 60 have accrued the upper limit of 40 years’ pensionable service and thus could have expected to retire with a full pension at 60.

Summary of submission

5. The Superannuation Bill appears to discriminate on the grounds of age, contrary to the EU regulations, and so doing would appear to be incompatible with the Human Rights Act.

6. The Bill also appears to presume that people over 60 have reached 40 years’ pensionable service and, in so doing, enshrines discrimination on the part of the Cabinet Office to those civil servants over the age of 60 who have not accrued 40 years’ service.

The proposal in the Superannuation Bill 2010-11

7. The Bill caps compensation payable under the Civil Service Compensation Scheme (CSCS) at a maximum of 12 months’ pensionable earnings for compulsory exits, and 15 months’ pensionable earnings for voluntary exits. It will not apply to those of us over 60 for whom the less generous Cabinet Office cap of six month’s pensionable earnings will continue to apply.

Comment

8. I suspect that the numbers of those who join the Civil Service later in their working lives, as I have, is increasing.

9. Now there is no upper age limit on service within the SCS it would appear to be inequitable to limit the new proposals contained in the Bill to those in the 50-60 age range. In so doing, it would seem to conflict with the provisions of the Employment Equality (Age) Regulations 2006 and thus conflict with EU regulations.

10. It is also wrong to assume that people will clock up their 40 years’ pensionable service

Request

11. I would be grateful if the committee could consider these aspects of the Bill with an eye to ensuring that it is ‘age neutral’ and thus when enacted applies without discrimination to civil servants over 60 who have yet to accrue 40 years’ pensionable service.

September 2010