HM TreasuryApr 27 2018

Public sector pension rules on same-sex survivors overhauled

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Public sector pension rules on same-sex survivors overhauled

Public sector pension schemes have been ordered by the government to provide equal pension benefits for same-sex partners in the event of a scheme member’s death.

The HM Treasury wrote to all public service scheme representatives on 21 April informing them about the implications of this judgment, said Elizabeth Truss, chief secretary to HM Treasury, in a written answer to parliament.

She added: “Departments responsible for public service schemes will now take forward any necessary regulatory changes.”

The schemes will provide further information on their approach and the timescales for implementation in due course.

The Teachers’ Pension Scheme, however, has already announced the introduction of these changes.

The government’s decision follows the ruling of the Walker v Innospec case.

In July 2017, the Supreme Court ruled same-sex couples that are married or in a civil-partnership should have the same pension benefits as heterosexual couples.

But the government isn’t, however, extending the same treatment to male survivors of opposite sex marriages.

According to union Prospect, the justification given by the government for this decision is that equal survivor benefits for male and female scheme members are required only for service from May 1990, and public service pension schemes already comply with this.

According to the Government Actuary’s Department, there’s an estimated immediate £1bn cost - before taking into account regular ongoing pension payments - associated with backdating survivors’ pensions beyond this date for male survivors of opposite-sex marriages.

According to Garry Graham, Prospect’s deputy general secretary, it is welcome that the Treasury has finally responded to the Supreme Court judgment.

“However the decision to allow discrimination against female scheme members to continue is wrong and should be reviewed by ministers,” he added.

maria.espadinha@ft.com