Public Service Pensions: Cost control mechanism consultation

ASCL response to HM Treasury's consultation on cost control mechanisms for public sector pensions. 
ASCL welcomes the opportunity to contribute to this consultation. However, HMT’s consultation paper was published on 24 June 2021 and the deadline for comments is 19 August 2021, a period of eight weeks. This seems very short for such a significant issue especially when the consultation runs over the school holiday period.

ASCL understands the need to reform the cost control mechanism considering the  preliminary 2016 breach as its first valuation. The proposals to move to a reformed scheme only design and widen the corridor are essentially parametric changes, changing key markers within the existing structure. ASCL is broadly supportive of these.

However,the introduction of an economic check is a fundamental change to the mechanism. ASCL sees the proposal as a breach of the ‘Heads of Agreement’ of in 2011-12 pensions negotiation, and a breach of the 25-year guarantee of no changes to public service pension schemes given by the Chief Secretary to the Treasury in November 2011.

Full response to consultation