On 9 January 2013, peers completed the first day of committee stage debate on the Public Service Pensions Bill.
The bill moves public sector pensions over to a career average scheme and increases the age at which members can draw their pensions.
The government's plans are based on a report by Labour peer Lord Hutton, who designed four key tests for public service pension reform: affordability, fairness to public service workers, fairness to taxpayers, and transparency.
Lord Hutton's recommendations were the basis for consultation between the government and public servants, trades unions and other member representatives, and the bill implements the agreements reached on:
- moving to career average pension schemes, instead of final salary schemes
- public servants working longer to receive a full pension, except for the armed forces, police officers and firefighters
- making no changes to the pensions of those who are 10 years from normal pension age on 1 April 2012
- changing the governance arrangements of public service pension schemes.
This bill applies to the whole of the United Kingdom.
To view part one of the debate click