Public sector pension schemes provide pensions to public sector employees such as civil servants, teachers and NHS workers. Many of these schemes are defined benefit schemes. While some public sector employers provide defined contribution arrangements, this Practice Note considers the defined benefit arrangements only. There are a number of public sector pension schemes. These are divided into local government schemes and central government schemes. The local government schemes are ‘funded’ schemes, while the central government schemes are ‘unfunded’. The local government schemes include all of the Local Government Pension Schemes (LGPS). The main central government schemes include: • the Principal Civil Service Pension Scheme (PCSPS) • the National Health Service Pension Scheme (NHSPS), and • the Teachers’ Pension Scheme (TPS) However, central government schemes also include: • the Firefighters’ Pension Schemes • the Police Pension Schemes • the Armed Forces Pension Schemes, and • the Judicial Pension Schemes There are also sectors that have a ‘quasi’ public sector pension arrangement,

Public sector pensions are occupational schemes for employees of central or local government, a nationalised industry or other statutory bodies. They include pension schemes authorised by statute for the: • armed forces (AFPS) • police • firefighters • civil service (CSPS) • teachers • local government (LGPS) • National Health Service Public sector pension schemes have around 20 million members including approximately 7.5 million active members (the latest published figures as at June 2026). The LGPS in England and Wales is the largest public sector pension scheme. Key features Key features of public sector pensions are: • they are described as unfunded—the reality is that there is no pot of money paid in by workers in the past to pay today’s pensioners and the money to pay benefits comes from today’s workers and the employer (effectively the state) on a pay-as-you-go basis • most run at a deficit as there are not enough contributions to pay today’s pension benefits and the Treasury meets the shortfall • the LGPS is different as it has underlying investments Contributions Points

This Practice Note considers the various types of public sector pension schemes and specific factors to take into account when dealing with such schemes in the context of family proceedings including key features, benefits, valuation and the impact of measures to remove unlawful discrimination arising from reforms carried out in 2015 (the McCloud remedy). It also details key practical points to note when dealing with a public sector pension. Public sector pensions are occupational pension schemes for employees of central or local government, a nationalised industry or other statutory bodies. They include pension schemes for the following: • armed forces • police • firefighters • civil service • teachers • local government • National Health Service (NHS) Public sector schemes, particularly uniformed services pension schemes, are often complex and it is therefore essential in many cases to seek advice from a pensions on divorce expert (PODE). See also the Pension Advisory Group: A Guide to the Treatment of Pensions on Divorce (December 2023) (Second Edition) at Appendix I as

ARCHIVED: This archived tracker contains all the key documents and announcements for the main public sector pension schemes up to October 2018 and dating right back to the formation of Lord Hutton's Independent Public Service Pensions Commission in 2010. It is not maintained and is for background information only. Reproduced with the kind permission of Eversheds Sutherland (International) LLP. Keeping track of the reform of public service pension schemes is not an easy task given the divergence of the schemes and their negotiations. This tracker brings together all the key documents and announcements for the main schemes up to October 2018 and dating right back to the formation of Lord Hutton's Independent Public Service Pensions Commission (IPSPC) in 2010. Whether you are looking for historic documents or the latest developments as they arise, this tracker should be your first port of call. This tracker page is for information purposes only and is not a substitute for legal advice. Eversheds Sutherland (International) LLP makes no representation about the content or accuracy of third party

Arrangements of the transfer club to which schemes in the public sector belong. A transfer club is formed where several schemes agree to a common basis of transfer payments.

What is a public service mutual? The ‘spinning out’ of services in an effort to improve the efficiency and effectiveness of public service delivery has a long history. It forms part of a broader search for alternative delivery models in the public sector. For further information, see: The ‘in-house’ (Teckal) and ‘co-operation agreement’ (Hamburg) exemptions—pre-PA 2023 [Archived]. The Government has given a name to a particular vehicle for spinning out—‘the public service mutual’. This has proved to be a rather fluid concept. The Cabinet Office website gave this definition (September 2014): 'Public service mutuals are organisations that have left the public sector but continue delivering public services. Employee control plays a significant role in their operation. There are many forms of mutual. You might think of a major employee-owned business like John Lewis or building societies like Nationwide that are fully or majority-owned by their members. But mutuals can also be co-operatives or social enterprises.' Importantly, spin-outs meeting these requirements are eligible for support from Government programmes including financial and practical support to the spinning

A pension scheme: (1) established by or under any enactment; (2) approved by a relevant governmental or parliamentary person or body; or (3) specified as being a public service pension scheme by a Treasury order.

Pensions analysis: On 4 February 2021, HM Treasury published its response to the consultation on removing the age discrimination arising from the 2015 public service pension scheme reforms, as identified by the Court of Appeal in the McCloud judgment. Michael Hayles, partner at Burges Salmon, and Ben Urquhart, trainee solicitor at Burges Salmon, discuss the consultation outcome and its implications.

Statement by [insert name of organisation] concerning a significant [cyber-attack OR data protection breach] on [insert date] On [insert date], we were made aware of an incident threatening the security of personal data for which we are responsible. [We OR [Insert name of investigating party—eg the Metropolitan Police or the Information Commission’s Office]] [have OR has] launched [a OR an] [ criminal] investigation. We are working with forensic experts and other data security professionals to establish the origin, nature and scope of this incident. We are conducting a thorough review of this incident. We are also working closely with[ our insurer,] [ the Information Commission’s Office,] [insert name of any relevant professional regulator or trade body,][ major financial institutions] [ and the police] to establish what happened, contain the breach and recover the data. We have already implemented additional security measures to protect against

The public telephone network that delivers fixed switched telephone services.

Where one company wants to acquire another company (‘target’) whose shares are admitted to trading on a regulated market or a multilateral trading facility in the UK (eg the Main Market of the London Stock Exchange or AIM, respectively), the acquisition is typically described as a public takeover. Due to the wide ownership of listed companies (relative to private companies), there are a number of regulatory requirements imposed on the conduct of public takeovers. These are explained in Practice Note: The Panel and the regulatory framework of takeovers. These regulatory requirements have a significant impact on the acquisition process and, thereby, on the tax issues that arise. This Practice Note considers the involvement of the target company in this process from a tax perspective, and of a tax lawyer advising the target. For the tax position of target shareholders on a public takeover, see Practice Note: Public takeovers and tax—the target shareholders. Level of target involvement The two key areas of potential target involvement in the takeover process are: • due diligence, and

STOP PRESS relating to chargeable gains anti-avoidance provision: Clauses 37 and 38 of Finance Bill 2026 (as introduced) amend the anti-avoidance rules that apply to share for share exchanges and schemes of reconstruction. In relation to the shareholder tax reliefs pertaining to a share exchange (TCGA 1992, s 135), the amended rules will, once the Finance Bill receives Royal Assent, have effect in relation to arrangements involving an issue of shares in, or debentures of, a company on or after 26 November 2025. Note, however, that the changes made by Finance Bill 2026 do not apply where (i) a company has made an application under TCGA 1992, s 138(1) before 26 November 2025, (ii) HMRC, or the Tribunal, has notified the company that the application has been approved, and (iii) the issue of shares or debentures occurs before 26 January 2026 or, if later, within 60 days of the company receiving approval of the clearance. HMRC has published interim guidance on the new rules and the clearance procedure at CG-App19. For more information about