Congress notes with concern the announcement by Elizabeth Truss, Chief Secretary to HM Treasury, on 6 September, on the valuation directions given to public service pension schemes.
Congress notes that the directions issued by the Treasury effectively dictate the assumptions made by actuaries when valuing public service pension schemes. This includes the assumptions about the discount rate, any changes to which can have a significant impact on the cost of pensions.
Congress further notes the reduction in discount rate required by the directions will increase the cost of many public service schemes including those covering NHS workers, firefighters, civil servants and teachers.
Congress is concerned that this change is a unilateral, technical decision made by government that will significantly increase pension costs for employers at a time when public services continue to suffer from the effects of years of austerity.
Congress believes this will inevitably lead to more public service employers finding ways to entice workers, particularly young workers, to give up hard-won pension rights.
Congress calls on the General Council to demand that the increased costs caused by this accounting manoeuvre are fully funded by central government and do not result in cuts to services or attacks on public service pension schemes.
Mover: Society of Radiographers
Seconder: Fire Brigades’ Union