The Treasury's "reference scheme" is being used as the basis on which a new public sector pension scheme will be designed. We look at what has changed.
Treasury chief secretary Danny Alexander made public changes to the design in a statement to the House of Commons at 12:30pm today, which included a better 1/60th accrual rate and protection for workers within ten years of retirement. The original Reference Scheme has the following components. • A Career Average Revalued Earnings (CARE)pension scheme. • An accrual rate of 1/65th - NOW CHANGED TO 1/60th • A normal pension age linked to State Pension Age - WORKERS RETIRING 2012-2022 exempted. • Earnings revaluation of past CARE service for active members. • Pensions in payme...
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