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Public Service Pensions (PSP)

Changes are being proposed to public service pension schemes.  This pensions section will give you the latest information available on the proposed changes.

Latest News

On 20 December 2011 the Chief Secretary to the Treasury announced that the Government had reached headline agreements on  the final scheme designs for the four largest public service pension schemes, agreed with employers and the majority of trades unions. Discussions are taking place to finalise the remaining details of these schemes.

The final design for the Firefighter pension scheme has been agreed and the fire service unions will be consulting their Executives and members on its terms.

These agreements have been the result of extensive, meaningful discussions over recent months. The main features of the schemes have been agreed and the remaining details will be finalised early this year, following further discussions with employers and unions. These are the scheme designs that the majority of unions have agreed to take to their Executives as the best that can be achieved through negotiations. Some meetings have already taken place; you should visit your scheme’s website for further information.

• View the Chief Secretary to the Treasury’s full statement.
• A 'Heads of Agreement' for Firefighters' Pension Scheme reached, Department for Communities and Local Government press notice (9 February 2012) 

Background to the final scheme structures

The Government set out its preferred scheme design, based on the recommendations of the independent review of public service pensions, led by former Work and Pensions Secretary Lord Hutton. Trades unions were invited to suggest changes to the Government’s preferred scheme design to ensure it best meets the needs of its members, within the cost ceilings set by the Government for the four largestmain schemes on 2 November 2011 and for the Firefighters’ scheme on 7 December 2011.

Following discussions with trades unions schemes submitted their preferred scheme designs to the Government for approval. The detailed Heads of Agreements can be found on the relevant scheme website.

The Heads of Agreement confirm that protection is extended to those closest to retirement.

Contact us

If you have a question that you think may be of interest to other public servants or if you have comments on the site please email them to: publicpensions@hmtreasury.gsi.gov.uk

Please note that we cannot answer individual pension queries, but we will post a selection of replies to our frequently asked questions page, so keep checking back here to find out more.

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