When will the pension changes be implemented and introduced?
The Government has legislated through the Public Service Pensions & Judicial Offices Act (PSP&JOA) to implement a deferred choice underpin within schemes. All eligible members will be treated equally and will be able to choose to receive pension scheme benefits from either scheme at the point benefits become payable. Where necessary, payments will be backdated.
Schemes made prospective regulations in 2022 to bring into effect the closure of all legacy schemes on 31 March 2022 and move members to the reformed scheme. These ensure members are placed in an equal position from this point onwards.
Schemes are consulting on retrospective scheme regulations which will ensure that the detail necessary for the remedy to be implemented in each affected scheme is in place. All schemes will have these regulations in place by 1 October 2023.
These regulations will be used for the various purposes listed throughout the Act, including the process by which a member can make a choice or “election” to receive new scheme benefits, for interest to be paid to a member or scheme on any amounts owed to or by the scheme, to make provision for pension credit members, to make provision for members to receive remediable service statements, to provide for members who have made additional voluntary contributions and for members who have already benefited from an immediate detriment remedy.
Where the changes legislated for through the Act produce disproportionate tax results that cannot be resolved through powers provided in the PSP&JOA 2022, further changes, in the form of tax regulations, will be made using provisions contained in the Finance Act that received Royal Assent on 24 February 2022. HMRC consulted on the first set of tax regulations from December 2022 to January 2023; these regulations were subsequently made and laid on 6 February 2023. Further tax regulations will be consulted upon, and finalised, in the coming months.
