McCloud update August 2023

Publication date: 22/08/2023 16:00:56

As a result of its recent industry consultation, the Government has confirmed that the 1 October 2023 deadline for the McCloud remedy is expected to be met, with the new scheme remediable service regulations statutory instrument to be laid in parliament in early September.  

When the LGPS changed from a final salary to a career average pension scheme in 2014, protections for older scheme members were introduced. However, in December 2018 the Court of Appeals found that the transitional protection afforded to older scheme members unlawfully discriminated against younger members. This ruling is often called the ‘McCloud judgment.’ 

The Government have confirmed that there will be changes to all main public-sector schemes, including the LGPS, to remove age discrimination resulting from the switch from a final pay to a CARE scheme. They are set to confirm exactly what changes need to be made to remove the discrimination from the LGPS. 

Keep an eye on our email bulletins for the latest updates where we will explain what the changes mean and how they effect members' pension benefits, as well as if there is any action we require from employers. To learn more about the McCloud remedy please see our website for FAQs and a useful fact sheet.