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Achieving Pensions Justice – Equalisation of Teachers’ Pension Scheme survivor benefits

Achieving Pensions Justice – Equalisation of Teachers’ Pension Scheme survivor benefits. What are survivor benefits in the TPS?. Teachers’ Pension Scheme (TPS) survivor benefits are sometimes called ‘family benefits.’

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Achieving Pensions Justice – Equalisation of Teachers’ Pension Scheme survivor benefits

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  1. Achieving Pensions Justice – Equalisation of Teachers’ Pension Scheme survivor benefits

    June 2014
  2. What are survivor benefits in the TPS? Teachers’ Pension Scheme (TPS) survivor benefits are sometimes called ‘family benefits.’ Survivor benefits are paid to partners and dependents after the death of a TPS member (teacher). When the scheme originated, benefits were only paid to widows and children. Over time, the definition of partners who can receive benefits has widened. Widowers, civil partners, same sex married partners and co-habiting partners can receive benefits. However, benefits received are unequal. June 2014
  3. Current Differential benefits In the TPS, your pensionable service determines your benefits and those of a surviving partner. For survivor benefits, not all pensionable service counts. Some partners could receive higher benefits than others: https://www.teacherspensions.co.uk/members/the-scheme/active-teacher/family-benefits.aspx Benefits for widows – backdated to 1 April 1972 Benefits for widowers – backdated to 6 April 1988 Benefits for civil partners – backdated to 6 April 1988 Benefits for co-habiting partners - backdated to 1 January 2007 June 2014
  4. Marriage (Same Sex) Couples Act 2013 The Marriage (Same Sex Couples) Act 2013 requires surviving spouses in a same-sex marriage to be treated in the same way as surviving civil partners in respect of occupational pension benefits. Pension schemes are allowed to restrict civil partners’ equal access to service-related benefits to those backdated to December 2005 (the implementation date for the Civil Partnership Act). Schedule 9 of the Equality Act 2010 allows this. The TPS restricts access to service-related benefits to those backdated to 1988. However, is this fair – if the same pension contributions are paid? June 2014
  5. Walker v Innospec http://www.brickcourt.co.uk/uploads/walker-v-innospec-et-judgment.pdf and http://www.brickcourt.co.uk/news/27-11-2012---employment-tribunal-reads-down-equality-act-to-give-civil-partners-equal-pension-rights.asp Mr Walker successfully challenged the exemption in the Equality Act 2010 (Schedule 9) which discriminated against civil partners compared with married partners. Unfortunately, this was overturned by an Employment Appeal Tribunal: http://www.bailii.org/uk/cases/UKEAT/2014/0232_13_1802.html. : June 2014
  6. Walker v Innospec The EAT ruled: It is discriminatory not to provide equal survivor benefits to civil partners. However, it is not against EU law to discriminate by refusing to pay benefits backdated earlier than 2005. When benefits differences on grounds of gender were made illegal there was no provision for retrospective claims. Therefore, there is no need to provide for retrospective claims in the case of civil partners. Therefore – discrimination is layered over discrimination. June 2014
  7. DfE Survivor Benefits The DfE: Treats same sex married couples as civil partners, and not as opposite sex married couples. Same sex married couples have survivor pension benefits backdated to 1988, alongside widowers and civil partners. Widows have pension benefits backdated to 1972. This discriminates against LGBT and women teachers. June 2014
  8. NASUWT Actions so far The DfE buried their announcement on the treatment of same sex married couples’ survivor benefits in a review of increases to pension contributions. The NASUWT condemned this. The NASUWT has demanded a genuine and full consultation with trade unions and all scheme members. The NASUWT has encouraged members to contact the DfE to protest about differential pension benefits. June 2014
  9. Coalition Government Review of Survivor Benefit Provision The Treasury has carried out a Review under the Marriage (same-sex) Couples Act. (1)The Secretary of State must arrange for a review of the following matters relating to occupational pension schemes— (a)relevant differences in survivor benefits; (b)the costs, and other effects, of securing that relevant differences in survivor benefits are eliminated by the equalisation of survivor benefits. June 2014
  10. Treasury Review ‘(2)For the purposes of this section, each of the following are relevant differences in survivor benefits— (a)differences between— (i)same sex survivor benefits, and (ii)opposite sex survivor benefits provided to widows; (b)differences between— (i)same sex survivor benefits, and (ii)opposite sex survivor benefits provided to widowers;’ June 2014
  11. Treasury Review ‘(c)differences between— (i)opposite sex survivor benefits provided to widows, and (ii)opposite sex survivor benefits provided to widowers. (3)The review must, in particular, consider these issues— (a)the extent to which same sex survivor benefits are provided in reliance on paragraph 18 of Schedule 9 to the Equality Act 2010; (b)the extent to which— (i)same sex survivor benefits, and (ii)opposite sex survivor benefits, are calculated by reference to different periods of pensionable service.’ June 2014
  12. Treasury Review (5)The Secretary of State must arrange for a report on the outcome of the review to be produced and published before 1 July 2014. (6)If the Secretary of State, having considered the outcome of the review, thinks that the law of England and Wales and Scotland should be changed for the purpose of eliminating or reducing relevant differences in survivor benefits, the Secretary of State may, by order, make such provision as the Secretary of State considers appropriate for that purpose. June 2014
  13. The Treasury Costings The Treasury has produced an estimate of the cost of full equalisation of survivor benefits for private sector defined benefit pension schemes. This estimates the costs of equalisation in the private sector as £18 million – a tiny amount. The Treasury estimates that one third of private sector schemes already pay full benefits for those scheme members who are in a civil partnership. June 2014
  14. The Treasury Costings The costs to the TPS are small. The Treasury estimates the costs of equalisation in the TPS as being less than 600 million. This includes backdated payments (about one third of the cost). The Treasury spreads this over 15 years – an additional 0.2% on employer contributions. In the TPS - the NASUWT says: The price of equality is well worth paying! June 2014
  15. The Treasury Review Process The NASUWT has met twice with the Treasury to discuss its Review. The NASUWT has demanded accurate costings from the Treasury. The NASUWT has submitted a detailed consultation response to its Review. The NASUWT has demanded equalisation for widowers, civil partners and same sex married couples, which must involve backdating of all benefits to 1972. It is unacceptable that the Coalition Government has not carried out a full written consultation and invited members of the public to respond. June 2014
  16. The outcomes of the Treasury Review The Review simply reported the current situation. The Review made no recommendations. The Review claimed to support equality, but that pensions were ‘unique’, with an implication that benefits could therefore continue to be discriminatory. The NASUWT believes that the Coalition Government has failed a key equality test. June 2014
  17. Next Steps for the NASUWT The NASUWT will carry on campaigning and lobbying the Coalition Government. NASUWT members should lobby MPs. NASUWT secretaries and school reps can make use of this Power Point Presentation to explain the NASUWT campaign. Use the materials on the ‘campaigns’ section of the NASUWT website and sign the TUC petition: www.tuc.org.uk/survivorpensions. June 2014
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