The Department of Finance has responsibility under Section 11 of the Public Service Pensions Act (Northern Ireland) 2014 (the Act) to make directions on valuations and cost control for public service schemes within scope of the Act.
The draft Public Service Pensions (Valuations & Employer Cost Cap) (Amendment) Directions (Northern Ireland) 2021 amend the original 2014 valuation and cost cap directions to implement the ‘un-pausing’ of the cost cap mechanism for public service pension schemes. The cost cap mechanism for public service schemes was paused in March 2019 due to uncertainty about the valuation of public service pension scheme benefits as a consequence of the ‘McCloud’ judgement.
Following recent consultation the Department of Finance has now published a policy response to remedy the unlawful discrimination identified as arising in the transitional protections element of reformed public service schemes as a consequence of the McCloud judgement. Following clarity on this matter the cost cap mechanism can be re-established. The draft directions set out how costs and liabilities arising from the benefits which will now be payable under that remedy are accounted in scheme valuations.’
The consultation with TUS, Draft Directions and a Government Actuary Department (GAD) presentation are published on this page. The amending Directions should be read in conjunction with The Public Service Pensions (Valuations and Employer Cost Cap) Directions (Northern Ireland) 2014.
The Department of Finance will publish its response on the consultation in due course following consideration of all replies received.
Letter to TUS Co-Chair for CCWG - Consultation on Cost Cap Directions 2021