Changes to Commutation
I have received a number of requests for clarification in respect of the date used by the Government Actuaries Department, which may be useful in addition to JBB Circulars 44 & 45.
These changes resulted from an increase in longevity identified by the Government Actuaries Department. In this case the implementation date of 1 October 2007 was fixed in the light of actuarial advice as a fair and appropriate date. It is also important to be aware that there was no backdating when the factors were last changed in 1998.
The introduction of new factors from a particular date may seem unfair to those whose retirement falls shortly before that date and who were unable to benefit from them. However, without wishing to sound unsympathetic, whichever date was used would then be to the detriment of other individuals.
I appreciate that some ex-members will be extremely disappointed, but there appears little or no potential to legally challenge the decision at this time.
Police Federation of E&W