The new government has suffered two major losses within days of winning the general election over economies made to workplace pensions in the public sector.
First on Monday judges won a victory which will benefit up to 1000 part time judges who lost out on their pensions when they moved from part time to full time work.
They claimed they while they were working part time they were being discriminated against by the government because they were denied pensions. The case had originally been thrown out by a tribunal because it was ruled ” out of time”.
However the Supreme Court, in one of the last judgments presided over by Lady Hale overturned this, and said: ” in the context of judicial pensions, a part-time judge may properly complain: during their period of service that their terms of office do not include proper provision for a future pension; and, at the point of retirement, that there has been a failure to make a proper pension available. “
The ruling could cost the government £1 billion.
Then a few days later after a long campaign by the Fire Brigades Union an Employment Tribunal ruled that following the government’s defeat at the Court of Appeal when current cuts in firefighters pensions were ruled as discriminatory the only remedy was that the pension scheme introduced in 2015 to impose such cuts should be scrapped.
The ruling will not only affect 6000 firefighters who would have had to save an extra £19,000 to offset such cuts but also applies to schemes for the NHS, civil service, local government, teachers, police, armed forces and the judiciary. This will leave the new government with a £4 billion bill.
A triumphant Matt Wrack, FBU general secretary, said:
“Last Christmas, we gave firefighters the gift of a victory in the courts. This year, firefighters can celebrate knowing that their union has secured their rightful retirement – a gift borne of solidarity that proves what unions can achieve.
“The law has now changed and our FBU claimants will be entitled to return to their previous pension schemes. Legislation will need to be amended, but there can be no delay in implementing this remedy. Firefighters were robbed, and they must now be repaid.
“To the new Tory government, let me be clear. We fought tooth and nail against your attacks on our pensions and won. If you dare to try to pay for these changes by raiding the pensions of current or future firefighters, we will come for you again – and we will win.”
Ministers had spent nearly £500,000 fighting the case which basically left firefighters on a two tier system – with substantially worse conditions for the latest recruits.
In 2015, the Tory-Lib Dem coalition imposed a series of detrimental changes to firefighter pensions, which included a built-in “transitional protection” which kept older firefighters on better pension schemes while younger members were moved onto a new, worse pension scheme, which included a requirement to work until aged 60.
The victory shows once again that the courts can overturn decisions made by governments. Since this applies to workplace pensions rather than the state pension. sadly it is not a parallel case which would bring justice for the 3.8 million women born in the 1950s who have had to wait up to six years for their pensions. But it is another reason for them not to give up hope that they can convince the courts of the justice of their cause.