| answer text |
<p>The cost control mechanism is designed to ensure a fair balance of risk between
public service pension scheme members and taxpayers with respect to the costs of those
schemes.</p><p> </p><p>Following a review of the mechanism by the Government Actuary,
and a full and open public consultation process, the Government confirmed that it
will implement three reforms to the mechanism. These reforms will be implemented from
the 2020 valuations onwards.</p><p> </p><p>The Government does not believe these reforms
breach the 25-year guarantee. The elements protected by the 25-year guarantee are
set out in legislation, (namely, section 22 of the Public Service Pensions Act 2013),
and the cost control mechanism is not included. The reforms will make the mechanism
more stable and allow it to operate more in line with its objectives. The reforms
will make changes to member benefits less likely, in line with the spirit of the 25-year
guarantee.</p>
|
 |
