26 September 2023

UNITED KINGDOM: PS pensions fight expands

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UNITED KINGDOM

Lawyers representing UK public teachers and doctors have launched a claim against the Government alleging that changes to their pensions in 2015 were discriminatory.

After successfully winning a similar pension case on behalf of judges, the London law firm of Leigh Day is also preparing employment tribunal cases for all public sector workers.

The British Medical Association is also coordinating the action with doctors over pension reforms that it claims could inflict huge financial losses on individuals by the time they retire.

The latest wave of legal action follows the Supreme Court’s earlier refusal to hear an appeal by the Government against a landmark ruling that found alterations to the terms of judges’ and firefighters’ pensions were discriminatory.

About 250 judges whose pension entitlements were cut won their discrimination claims against the Ministry of Justice.

The reforms introduced a cut-off age preserving better conditions for those approaching retirement but transferred younger judges to a less generous scheme.

Lawyers argued the distinction amounted to age discrimination.

Since far more women and those from minority backgrounds made up a large proportion of the younger workforce, they maintained it also constituted sex and race discrimination.

The judges’ claims were joined by similar submissions on behalf of firefighters when the case reached the Court of Appeal.

The precise terms of any improved pension terms have not yet been agreed.

The Supreme Court decision has set a precedent for other public sector workers.

It has been estimated the Government may have to find an additional £4 billion (A$7.25 billion) to pay for improved pensions.

“We respect the court’s decision and confirmed in a written statement to Parliament on 15 July that we accept the judgement applies to all main Public Service pension schemes,” a Government spokesperson said.

“We remain committed to public sector pensions that are fair to both workers and taxpayers. We are now considering how best to implement the decision.”

London, 28 August 2019

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