Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of reviewing pension abatement rules on (a) public sector pensions and (b) re-employment earnings for public sector employees.

Pension abatement rules formed part of the overall design of most legacy Public Service Pension Schemes. These rules worked as part of an overall package to safeguard against undesirable practices and ensure propriety and value for money. Reformed schemes were introduced in 2014/15 and do not contain abatement provisions.

The government has no plans to review the abatement rules. It is generally not appropriate to retrospectively improve the terms of public service pensions, as this would place costs on current employers for benefits that were not envisaged at the time such pensions were accrued.