As the Deputy may be aware, I have over-arching responsibility for public service pensions policy.
The original widows’ and orphans’ contributory pension schemes were first introduced in the public service in 1968 and were open to male employees only; membership was subsequently extended to female employees and the schemes were renamed Spouses’ and Children’s schemes. The date of introduction for the schemes varied in different parts of the public service. At the time of their introduction for each cohort, membership was made optional for serving staff and mandatory for new entrants.
The revised Spouses and Children’s Superannuation Scheme was first introduced in the civil service in 1984. Membership of this scheme is mandatory for anybody who joined the civil service as a new entrant after its introduction. Similar provisions exist in most areas of the public service.
The revised scheme, which was introduced in agreement with staff interests, extended the benefits payable to include post-retirement marriages and also extended the children's benefit to include adoptive, post-retirement/resignation and non-marital children of the member.
All public service S&C schemes, both original and revised, are contributory in nature, regardless of whether the relevant main pension scheme required pension contributions. Members of the original scheme receive a full refund of contributions on retirement if they remain unmarried throughout their period of membership, as post-retirement spouses and children are not covered under that scheme. Members of the revised scheme do not receive this refund because the scheme is designed to cover post-retirement relationships.
Survivor Benefits and associated contributions are embedded in the Single Public Service Pension Scheme. Members of the Single Scheme (all new entrants from 2013) are not also members of a separate Spouses and Children's Scheme. The applicable Survivor Benefits are in keeping with those available through membership of a revised Spouses and Children's Scheme.
Member contributions are compulsory under revised Spouses and Children’s Schemes and there are no exemptions available based on marital or family status. In certain circumstances where a member has in excess of 40 years' service, they are entitled to a refund in respect of the excess period only, starting with the initial contributions paid.
Spouses and Children’s schemes operate on a similar basis to any group insurance scheme, whereby each member pays a contribution to ensure coverage, but not every member will receive a benefit from their scheme.
The nature of the schemes are such that they provides for contingent benefits to each member. Spouses & Children Scheme benefits only become payable in the event of the member’s death; if a married member is pre-deceased by their spouse, no spousal benefit is payable.
All officers hired after a certain date are enrolled in the applicable scheme on a mandatory basis, regardless of their marital or family status. Contributions are payable at the same rates by all scheme members, and marital or family status does not impact upon the members’ benefits within the main pension scheme; the pension benefits payable for any public service scheme are calculated in the same manner for all members regardless of this.
It is for these reasons that I do not believe that public service Spouses and Children's Schemes are in contravention of equality legislation, and can confirm that a further refund mechanism is not possible.
