Source · National Audit Office

Public Service Pensions

This report outlines how the public service pensions landscape has changed since the Hutton Review and highlights future challenges.

Published: 19 Mar 2021 Recommendations: 5 Type: Value for Money NAO confirmed: 4 Department: Department for Education

Dept: Department for EducationDepartment of Health and Social CareHM TreasuryMinistry of Defence Topics: Commercial and financial managementFinancial sustainabilityWork, welfare and pensions nao.org.uk →

Recommendations

5 items

4 accepted 1 partially accepted 5 implemented

Recommendation 1

Addressee: HM Treasury · Source location: Page 12, paragraph 22, point a

HM Treasury should:
a) develop plans to address the impact of the administrative challenge that its proposals in response to the McCloud judgment will have for employers and scheme administrators, so any changes can be implemented whilst maintaining a good level of service for members;

Response position: Accepted

Delivery: Implemented · Q3 2023-24 · Confirmed by NAO

Recommendation 2

Addressee: HM Treasury · Source location: Page 12, paragraph 22, point b

b) resolve its concerns about the cost control mechanism and be open and transparent about the impact of any changes it makes for employers and scheme members;

Response position: Accepted

Delivery: Implemented · Q4 2023-24 · Confirmed by NAO

Recommendation 3

Addressee: HM Treasury · Source location: Page 12, paragraph 22, point c

c) in conjunction with the Cabinet Office, work closely with employers to understand how public service pensions can best support their workforce planning, to ensure pensions are an effective tool in recruiting and retaining the staff they need;

Response position: Partially accepted

Delivery: Implemented · Q4 2023-24

Recommendation 4

Addressee: HM Treasury · Source location: Page 12, paragraph 22, point d

d) consider government’s overall approach to ensuring that employees understand their pensions, particularly for the three million scheme members affected by the McCloud judgment who will need reliable and timely information, including from scheme administrators, to make decisions about their retirement plans; and

Response position: Accepted

Delivery: Implemented · Q1 2025-26 · Confirmed by NAO

Recommendation 5

Addressee: HM Treasury · Source location: Page 12, paragraph 22, point e

e) consider whether broader performance measures, covering affordability and its other objectives, would give it greater assurance that it is delivering its objectives for public service pensions. For example, it could collect and analyse information regularly on the rate at which some groups are opting out of schemes.

Response position: Accepted

Delivery: Implemented · Q4 2024-25 · Confirmed by NAO