£2bn pen­sion bill for Armed Forces

Daily Express - - NEWS - By David Hard­ing

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.

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