Thursday , November 14 2019
Home / unitedkingdom / Taxpayers face a £ 4bn annual pension bill after court judgment Society

Taxpayers face a £ 4bn annual pension bill after court judgment Society



The government carries a £ 4bn annual pension bill after a group of judges and firefighters have won a case of age discrimination.

The investment company said members of public sector pension plans could receive a massive boost to retirement vessels, that the appeal against the court ruling was unsuccessful. The expenses must be financed through cuts or increased taxes.

The Coalition Government moved to the majority of the public sector workers who moved to 2015 new pension plans. However, these new schemes usually offered fewer terms, trying to foster the anger of many workers and unions.

As a result of changes, the government places transitional arrangements in practice, as older workers could already have more generous schemes, while younger people had to transfer to new schemes.

A group of judges and a group of firefighters were taken to court in court, and on December 20, according to the Court of Appeal, the transition arrangements offered to some members led to unlawful discrimination.

Now the government has stated the potential cost of this decision. On Wednesday, Liz Truss, the Treasury Secretary-General, stated in a written statement: "Provisional estimate is that the potential impact of the judgment can be equivalent to £ 4bn a year."

The government called for a decision to appeal, and this was not successful, the workers transferred to new payments would be compensated.

Hargreaves Lansdown's investment firm stated that other public sector groups had an impact, such as police agents, seeing similar changes to their pension plans and public sector employees, such as teachers and jailers.

Tom Selby, the chief analyst at AJ Bell, said: "Public sector regime members may receive a massive boost to retirement if they fail to appeal against this decision, which will cost the Treasury and the general Treasury a year. £ 4bn region. "

"The involvement of public finances" is potentially gizzy, "he said:" It's very difficult [this] It would simply be able to be absorbed through tax, so spending cuts or tax cuts need almost certainly to fill this black hole in the pension. "


Source link