Public Service Pensions Bill

Memorandum submitted by the CBI (PSP 13)

In answer to questions raised at evidence session on Tuesday 6 November

The CBI’s view on accrued benefits is that any change the employer wants to make to them, including to the age at which these can be received, should be allowed so far as they comply with section 67 of the Pensions Act 1995. Section 67 states prevents scheme rules being modified if the change adversely affected members’ rights without member and trustee consent.

The Bill’s definition of accrued benefits prevents changes being made to public service schemes, but our legal advice has told us that this would not be transferable, or set precedent, for private sector schemes. In that case, we are content with the current definition in the Bill. As such we are comfortable with the drafting in the Bill.

November 2012

Prepared 14th November 2012