As you may recall, we reported in our March newsletter that the consultation on the reform of the public sector pension schemes was nearing its conclusion. To cement this fact the Public Service Pensions Bill had its first reading in Parliament in September, and its second reading in the House of Commons on 29 October 2012. The Public Bill Committee is expected to report to the House by 22 November 2012.
The Bill follows the recommendations of the Hutton Report published in March 2011 to change future final salary accrual to one based on career average earnings, and to raise normal pension age so that it tracks the rise in state pension age (except for the armed forces, police and fire-fighters who will have a normal pension age of 60). These changes are expected to be implemented in 2015.
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