The Public Service Pensions Act (Northern Ireland) 2014 provides the legal framework for regular actuarial valuations of the public service defined benefit pension schemes to measure the cost of the benefits being provided. These valuations will inform the future contribution rates to be paid into the schemes by employers. The 2014 Act, when taken together with regulations made under it and the Public Service Pensions and Judicial Offices Act 2022, also provides for the introduction of a reformed cost control mechanism to ensure that the benefits of the pension schemes remain fair to members and taxpayers.
The Department of Finance made the Public Service Pensions (Valuations and Employer Cost Cap) Directions (Northern Ireland) 2014. The Department also made amending Directions in 2015, 2018, 2019 and 2021.
As part of the 2023 set of Directions, the Department of Finance is revoking all the previously made directions on the Valuations and Employer Cost Cap due to the extensive changes necessitated by the reforms to the cost control mechanism, and to ensure that the 2020 valuations of the public service pension schemes can be completed using updated assumptions. This will enable there to be one consolidated set of directions for Northern Ireland Departments with responsibility for each of the devolved public service pensions schemes.
The Department of Finance has a statutory duty to consult with representatives of public service pension scheme members and also with the Government Actuary before making these Amending Directions.
The Department’s response to its consultation with member representatives and its consultation with the Government Actuary are also published on this page.
The Public Service Pensions (Valuations and Employer Cost Cap) Directions (Northern Ireland) 2023