News releases
Lord Hutton's Report - "An Opportunity to Rebuild Trust and Confidence"
The Forces Pension Society (FPS) welcomes the publication of Lord Hutton’s report on public sector pensions and acknowledges that it sets the signposts for a sustainable future. The Society is pleased that much of our evidence and work with Lord Hutton has been reflected in the report. In particular, it welcomes the recommendations on transparency, clear and regular statements of pension earned, protection of accruals, and governance by properly constituted and competent pension boards.
The Society believes that Career Averaging need hold no fears for the Armed Forces and it looks forward to contributing its expertise to the design of any new schemes.
Looking forward, FPS General Secretary, Major General John Moore-Bick, said "Any new scheme must be properly financed and we insist that the Armed Forces schemes be able to exploit the freedom cited by Lord Hutton to be tailored to the unique requirements and hazards of military careers. As schemes evolve, the principle of ‘All of One Company’ must be respected so that there are no unfair or glaring differences between those serving concurrently".
He continued "We wish to see an end to the Armed Forces pension community being squeezed by the enduring pressure on the resources of the Ministry of Defence and we will continue to battle for those who are unfairly disadvantaged by the past so that their fate is not cemented into the future. Whilst it is up to the Chiefs of Staff to offer their advice on the maximum retirement age, we point to the copious evidence of other nations which allow uniformed service at an advanced age, and we suggest caution".
Major General Moore-Bick objected strongly to the description of the Armed Forces schemes as non-contributory, saying "it angers those whose pay is reduced by the abatement mechanism, in other words, a salary sacrifice".
He concluded "If this report is handled in that spirit of cooperation and fairness which lies at the root of understanding of the Military Covenant, if there is full consultation and if new plans are developed in a measured manner, Lord Hutton’s findings can do much to restore that long standing trust and confidence in Armed Forces’ pensions, which has been badly bruised in recent months".
In summary, we are cautiously optimistic that Lord Hutton’s report offers a way to rebuild to dialogue with the MOD and ensure that the future pension scheme reflect the needs of the Armed Forces as well as it possibly can.
