HMT publishes report reviewing cost control mechanism in public pension schemes

Article summary

HM Treasury (HMT) has published its final report of the Government Actuary’s recommendations and findings on the cost control mechanism in the public service pension schemes. The cost control mechanism is said to assess elements of the costs of the schemes whereby if the cost decreases/increases by more than 2% of pensionable pay in comparison to their original level, the member benefits are also decreased/increased. HMT states that the assessment examines the current mechanism and set recommendations on potential changes to the mechanism.