Source · Select Committees · Public Accounts Committee
Recommendation 24
24
HM Treasury told us it does not collect and analyse data on how pension outcomes...
Conclusion
HM Treasury told us it does not collect and analyse data on how pension outcomes differ across groups of scheme members or across generations.57 GAD told us that insufficient data means government is unable to analyse similar gaps that are likely to exist in other groups, such as black and minority ethnic members. However, GAD said it would expect that similar gaps exist in the average pensions of black and minority ethnic members compared to white scheme members, because they are similarly affected by differences in historic earnings.58 HM Treasury told us that schemes do not typically hold 48 HM Treasury (Catherine Little) letter to the Committee, 12 May 2021 49 Qq 30–31 50 Qq 30–32, HM Treasury (Catherine Little) letter to the Committee, 12 May 2021 51 Qq 20–21, 30–32, 57–60, 74 52 Q 35 53 Qq 21, 36–41, 57, 74 54 C&AG’s Report, para 11 55 Qq 5–6, 26–29 56 C&AG’s Report, para 11 and Figure 3 57 Qq 57–60 58 Qq 7, 30, 58–60 Public Sector Pensions 15 data on members’ protected characteristics (other than gender because this is relevant to longevity assumptions), because of data protection regulations.59 However, HM Treasury recognised the possibility that there could be other legal challenges in the future.60
Government Response
Acknowledged
HM Government
Acknowledged
4.2 Differences in public service pensions between different groups are a function of past differences in earnings over members’ careers rather than differences in pension provision itself. 4.3 The government agrees on the importance of collecting and analysing data of the drivers of differences in pensions savings between members of different groups. The government has made reporting of the gender pay gap mandatory for all public sector employers, and gender and ethnicity data for respective workforces are included in reports published by independent pay review bodies. Office for National Statistics (ONS) statistics show that the median gender pay gap among full-time employees is lower in the public sector (11.2%) compared to the private sector (14.1%). 4.4 The focus on drivers is supported by practical challenges to collecting data on pensions savings according to other protected characteristics. Data on members’ pensions savings are held by scheme administrators for the purpose of paying out pensions and carrying out scheme valuations. Data on protected characteristics, apart from age and gender, are not relevant for these purposes and so are not currently collected by schemes. Schemes may continue to explore options to collect pensions savings data according to other protected characteristics within data regulations. 4.5 Differences in pension savings related to different rates of participation in public service pension schemes are addressed in the response to Recommendation 3. 4.6 As well as providing a better indication of the reasons for differences in pensions savings, the focus on differences in earnings is supported by the fact that these can more readily be addressed by government, for example, through pay gap reporting and targeted career programmes to support equal career opportunities. In contrast, it would not be appropriate for the government to review retrospectively accrued pension rights where these rights were accrued according to the rules of the scheme.