The revised proposals from the government include three elements:
The implications for members in the health and local government pensions schemes are also, at this stage, unclear.
Other issues on which agreement has been reached in the national level talks are the need for transparency, equality impacts, participation rates and opt-outs, scheme governance and the principles on which the scheme-level discussions should be based.
The government has assured unions that it is not proposing any further increase in employee scheme contribution rates in addition to the 3.2% increase already announced.
The Treasury's proposed new cost ceilings for each of the main public sector pension schemes are set out below:
Pension Scheme | Gross cost ceiling | Taxpayers | Employees |
NHS Pension Scheme (England and Wales) | 21.9% | 12.1% | 9.8% |
Principal Civil Service Pension Scheme | 22.5% | 16.9% | 5.6% |
Teachers Pension Scheme (England and Wales) | 21.7% | 12.1% | 9.6% |
Local Government Pension Scheme (England and Wales) | 20.4% | 10.9% | 9.6% |
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