£2bn pension bill for Armed Forces
THE Armed Forces will put aside almost £2billion to meet the costs of a Government pensions blunder.
Ministry of Defence bosses have earmarked the cash to pay for the pension arrangements for some of Britain’s servicemen and women.
The costs are due to a landmark Court of Appeal decision in July, which ruled that changes applied to judges and firefighters’ pensions were discriminatory on the grounds of age – and that the ruling should be applied to all public sector pension schemes.
The Government has admitted that, across the whole public sector, the additional costs could be as high as £4billion.
The extra costs are a result of proposed changes to public sector pension arrangements that were announced by the Government back in 2015. The changes proposed that older workers could stay in existing pensions, while younger members born after a certain date had to transfer to new and reportedly less beneficial schemes.
The pension changes were subsequently successfully challenged in court by public sector unions.
The courts not only found in favour of the unions but also said the Government could not appeal the ruling.