GMB Union joins firefighters and doctors in seeking Judicial Review over pensions

GMB Union has launched a Judicial Review against the Treasury over its use of the cost control mechanism on public sector pension schemes.

The announcement comes amid similar moves by the British Medical Association (BMA) and Fire Brigades Union (FBU).

GMB claimed that, since 2015, more than four million people working in the NHS, civil service and local government have “effectively been overcharged” for their pensions.

The union stated that the government has passed legislation that would allow them to use the "surplus cash", which GMB estimated at £2.4bn, to pay for the costs of addressing the McCloud judgment.

The McCloud judgment found that the government had discriminated against public sector workers on the ground of age, as younger members were forced to move to a new, less beneficial pension scheme while older workers remained in the existing scheme.

GMB’s legal review is aiming to stop the government using the money to rectify McCloud and return it to public sector workers.

“We have no course of action other than to challenge the government’s intention via Judicial Review,” stated GMB national pensions organiser, George Georgiou.

“It is utterly shameless of them to plunder the pension pots of hard-working public sector workers to pay the costs of a case they clearly lost by not carrying out their responsibilities lawfully. 

“GMB members were told to pay in more than required, we were told that we would get pay rises and live longer - the opposite has occurred just as the government’s response is the opposite of what we deserve.”

The cost control mechanism currently adjusts contributions or benefits if the cost of the pension scheme diverges from the target cost by 2 per cent or more, although the government recently announced changes to the mechanism.

Pensions Age has contacted the Treasury for comment.

    Share Story:

Recent Stories

Are current roads into retirement delivering member value?
Laura Blows explores HSBC Master Trust’s recent report, Converting pension pots into incomes, with HSBC Retirement Services CEO, Alison Hatcher.

Savings and finance at retirement
Laura Blows is joined by Claire Felgate, Head of Global Consultant Relations, UK, at BlackRock, to discuss savings and finance at retirement. Please click here for an edited write-up of the video

Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth. Please click here for an edited write-up of the video

Pension portfolios – the role of asset-backed securities
Laura Blows is joined by Royal London Asset Management (RLAM) head of sterling credit research, Martin Foden, and its Senior Fund Manager, Shalin Shah to discuss the role of asset-backed securities (ABS) within pension fund portfolios
Incorporating ESG into fixed income
Laura Blows is joined by TCW head of fixed income ESG, Jamie Franco, to discuss incorporating environmental, social and governance (ESG) strategies into fixed income portfolios