Public sector cuts hit judges' pensions

http://www.guardian.co.uk/law/2013/feb/06/public-sector-cuts-judges-pensions

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Judges have been given figures showing how much they will lose when their tax-free pension allowances are cut in line with government reforms of public sector pay.

There has been speculation that the severity of the cuts could prompt members of the bench to launch a legal challenge in the courts. Before April 2012, judges did not have to make any contribution towards their pensions.

Announcing further reductions in the value of judges' income after retirement, the justice secretary, Chris Grayling, said: "Our judges are rightly held in high regard, but at a time when there is widespread pension reform across the public sector the judiciary cannot be immune, particularly given the exceptional economic circumstances.

"The new scheme still provides a good way of saving for retirement and will remain among the most generous in the public sector."

The latest cuts will be included as an amendment to the public services pension bill that is currently going through parliament.

Responding to the figures, a spokesman for the judiciary said: "We have been sent the details of the final pensions offer and are considering it carefully. It would be premature to comment further at this stage."

Appearing before a Lords select committee last week, the lord chief justice, Lord Judge, hinted at dissatisfaction among colleagues about the prospect of reduced pensions.

"We are all aware that the country is broke," he said, "[but] it will not be very welcome. It's a very serious and delicate issue."

Reducing pensions could deter the process of increasing diversity on the bench, he added. "The greatest impact will be among those [judges] aged between 42 and 55 and that's the area where there's a higher proportion of women."

Under the government's reforms judges, in common with other high earners, may now incur tax charges where their pension saving goes above limits set by parliament. The Ministry of Justice said "generous transitional arrangements" had been made to help those close to retirement.

A high court judge who retires after 20 years of service can currently expect to receive £86,500 a year plus a lump sum of £173,000. In future that will fall to £75,000 a year with no lump sum.

For circuit judges with a similar length of service, the figures are currently a pension of £64,000 a year with a £144,000 lump sum. That will now fall to £55,000 a year.