Civil Service VES - Equalities Act

RetSol

I posted this query in the pensions forum originally but the redundancy forum might be a more suitable home for it. 

I am looking for some Forumite wisdom regarding a potential disability discrimination claim connected with a civil service voluntary severance payment. 

I worked in the civil service between 1993 and 2010.  I took voluntary severance in December 2010 and  recently claimed a deferred Classic pension.  Between 2003 and 2010, I worked part-time as a reasonable adjustment on the grounds of disability.  I understood at the time that I was accruing pension on the basis of my part-time hours. The statement of deferred benefits which I received on leaving the civil service and the subsequent annual benefit statements which I received from Civil Service Pensions were compiled on this basis. 

In the course of obtaining a quotation of my deferred benefits early this year, I discovered that CSP were crediting me with full-time service throughout. When I asked the pensions administrator why my reckonable service was not now being reduced on account of my part-time hours, he told me: "Because it's medical....".

A few Google searches later, I believe that I have established that, as a result of the passing of the Equalities Act 2010 (in force in October 2010), the reduction in reckonable service in the 2010 calculation is now considered to amount to unlawful disability discrimination.  

Since the 2010 severance payment was based on the calculation of reckonable service made in December 2010, it would now seem that I have a claim for additional severance pay.  I estimate the shortfall to be in the region of £6,500.00 (gross).

My question is whether anyone has experience of claiming additional severance pay under similar circumstances or has any tips on handling the claim.  For example, it is not entirely clear to me whether I should approach CSP or my former civil service employer for payment of the shortfall.  

Before the disability discrimination issue came to light, I had already made a complaint under CSP's two-stage IDR procedure for delay in processing the application for the pension.  I have received a Stage 1 determination and I propose to appeal against the determination. One option, in the first instance, is to seek to get the severance pay shortfall dealt with under Stage 2.  

Manxman_in_exile

Are you saying that because you worked part time because of your disability, that your voluntary severance payment and deferred pension benefits etc should be calculated as if you had been working full time (which you would have been doing if you hadn't been disabled)?

RetSol

Manxman_in_exile said:

Are you saying that because you worked part time because of your disability, that your voluntary severance payment and deferred pension benefits etc should be calculated as if you had been working full time (which you would have been doing if you hadn't been disabled)?

Exactly. CSP have informed me, apparently on the advice of my former civil service employer, that the calculation of my reckonable service made in 2010 should have been on the basis of full-time hours.  This appears to be correct.  See the following extract from the 2015 EHCR guidance (Your Rights to Equality at Work:Pay and Benefits, p. 64) - "Occupational pension schemes must not unlawfully discriminate against people. In addition, an occupational pension scheme must make reasonable adjustments to any provision, criterion or practice in relation to the scheme which puts you at a substantial disadvantage in comparison with people who are not disabled.  Example — The rules of an employer’s final salary scheme provide that the maximum pension receivable is based on the member’s salary in the last year of work. Having worked full-time for 20 years, a worker develops a condition which leads them to reduce their working hours two years before their pension age. The scheme’s rules put them at a disadvantage as a result of their disability, because their pension will only be calculated on their part-time salary. The trustees decide to convert the worker’s part- time salary to its full-time equivalent and make a corresponding reduction in the period of their part-time employment which counts as pensionable. In this way, their full-time earnings will be taken into account. This is likely to be a reasonable adjustment to make.". 

Manxman_in_exile

I'm not familiar with this area, but the example you quote seems to me to be significantly different from your situation. 

In the example an employee with 20 years full-time service already accrued is forced because of disability to go part-time for the final two years before they retire.  It is suggested there that it would be "likely[*] to be a reasonable adjustment to make" to calculate their pension on the full-time pensionable earnings rather than part-time because 20/22 of their service had been full-time.

In your case you had a total of 17 years service, only ten of them full-time and seven part-time.  That's a somewhat different proposition and ratio (10:7) than 20:2 

I think I might be concerned that if I questioned the service used to calculate the original severance payment, they might begin to wonder about the deferred pension calculation.

[*]  The example you quote only says such an adjustment is "likely" to be reasonable - not that it would be.

Query - if that example is correct in respect of "disability discrimination", why is any period of full-time service prior to disability relevant at all?  If it's a case of "disability discrimination" and an employee can only work full time because of their disabilty, then they're entitled to a full-time pension even if they've never worked full-time, otherwise they're being discriminated against because of their disability.  Are you sure that is the effect of the legislation?  Seems odd to me... but maybe it's right.

RetSol

Thank you, @Manxman_in_exile.  I am confident that CSP's approach is the correct one.
The purpose of the thread is to find out whether any forumite has experience of claiming additional severance pay on disability discrimination grounds after the event, particularly in the context of the civil service where reckonable service determines both severance pay and deferred pension entitlement.