Civil Service Pensions And Outsourcing Early Retirement Rights

Case

High Court Case - Annette Ellis v. Cabinet Office [2014] EWHC 2049 (Ch)

Subject to appeal?

Cabinet Office has said it will appeal this decision.

Who is this decision relevant to?

Public authorities with outsourced functions. Private sector outsourcing companies. Organisations with defined benefit pension schemes whose trust deeds are not clear on when an active member becomes deferred following a change in position.

Take away points

Former civil servants who chose not to transfer their benefits to a contractor scheme under Fair Deal may have early retirement rights identical to those of an active member, rather than those applicable to a deferred member. Public authorities engaged in previous outsourcing arrangements should consider whether they have any outsourced former staff in the same position as Ms Ellis and who may have increased early retirement rights. Outsourcing organisations should consider whether this decision impacts on their workforce management policies. For other organisations with defined benefit pension schemes it is sensible to review the terms of the scheme to confirm when a member moves from active to deferred status, and how it uses terms such as "resigns". Case facts

Ms Ellis transferred from the UK Civil Service as part of an outsourcing arrangement. Under the version of the Government's Fair Deal policy applicable at the time, she could join a broadly comparable pension scheme for her service after transfer. This scheme provided benefits based on the PCSPS at the time (Contractor Scheme). These included a right...