McCloud court case

When the Government reformed public service pension schemes in 2014 and 2015 it introduced protections for older members. In December 2018, the Court of Appeal ruled that younger members of the Judges' and Firefighters' pension schemes have been discriminated against because the protections do not apply to them.

The Government has confirmed that there will be changes to all the main public service pension schemes, including the LGPS, to remove the discrimination. This ruling is often called the 'McCloud judgment' after a member of the Judges' Pension Scheme involved in the case.

When the LGPS changed from a final salary to a career average pension scheme in 2014, members who were within ten years of their Normal Pension Age on 1 April 2012 were given protection from the changes. The Normal Pension Age in 2012 was generally 65. In simple terms, when a protected member takes their pension, the benefits payable under the career average and final salary schemes are compared. The higher amount is paid. This protection is called the underpin.

What does this mean for the LGPS?

To remove the discrimination, the Government will need to provide younger members with protection equal to the underpin protection already given to older members. It consulted on the proposed changes to the LGPS to do this in 2020. In May 2021, the Government issued a statement confirming the key changes it will make to the LGPS to remove the discrimination. We expect a full response to the 2020 consultation in 2022.

^{*source Frequently asked questions :: LGPS (lgpsmember.org)}

Wiltshire Pension Fund Update

The LGPS McCloud remedy regulations come into force from 1 October 2023. You do not need to take any action as these protections will be applied automatically to eligible scheme members, however most members are unlikely to see an increase to their pension. Where there is an increase, it is likely to be small. This is because most members build up a higher pension in the career average scheme than they would have built up in the final salary scheme. We will be in contact with those members who are affected by the changes. 

However, please note that the vast majority of  members are unlikely to see an increase to their pension, and where an increase is applied, it is likely to be small. This is because most members will build up a higher pension in the Career Average Pension Scheme (49^ths) than they would have under the final salary scheme (60^ths).

To find out more visit the frequently asked questions section of the LGPS website or dowload their Member Factsheet