Transitional Protection update July 2022

The necessary legislative framework that’s required to comply with the Transitional Protection remedy, as per the government’s consultation response, is being rolled out in two stages.

The first stage was to introduce the Public Service Pensions and Judicial Offices Act 2022. This Act legislates for how the government will remove the discrimination identified by the courts in the way that the 2015 reforms were introduced for some members. The Act also sets out that from 1 April 2022 all those in service in the main unfunded public service pension schemes, including the Teachers’ Pension Scheme, will be members of the career average (reformed) schemes, ensuring equal treatment from that point on.

Stage two will address the different treatment of members between 1 April 2015 to 31 March 2022 (the remedy period) and will be implemented once the necessary secondary legislation is in place and our systems have been adapted. Phase two will return transition members’ service to the final salary legacy scheme for the remedy period and allow members to make the choice between final salary and career average pension benefits for that service. We’ll also consider the options available for all affected members who:

  • took out pension flexibility options in the remedy period
  • had overtime in the remedy period
  • had an additional teaching employment in addition to a full-time teaching employment in the remedy period
  • see changes in pension accrual affecting their Annual Allowance and scheme pays requirements
  • have changes in pension accrual that affects actual or potential Lifetime Allowance tax charges in the remedy period.

Until stage two of the legislation process is completed there’s no legal basis for us to implement the remedy. We therefore won’t be able to provide options to new retirees, or those affected during the remedy period until October 2023 at the earliest. As we’ll have to contact all members affected by the remedy from this date, please bear with us as it’s likely to take some time to reach everyone.

For those of you planning to retire, you can claim benefits based on which arrangements you’re in. When phase two comes into effect, and after we contact you, you may wish to take the alternative scheme benefits for the remedy period. If so, we’ll apply the changes retrospectively, from the point they should have been paid.

We encourage members and other interested parties to keep themselves updated with progress via the Scheme changes section of our website.

Last Updated: 06/07/2022 09:19