Local Government Pension Scheme

The McCloud Remedy - the basics

• What is the McCloud case about?

  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 had been discriminated against because the protections did not apply to them.

  From 1 October 2023, the Government changed all public service pension schemes, including the LGPS, to remove the discrimination. The ruling is often called the ‘McCloud judgment’ after a member of the Judges’ Pension Scheme involved in the case. The changes to remove the discrimination are known as the ‘McCloud remedy’.

• What does it mean for the LGPS?

  When the LGPS changed from a final salary to a career average pension scheme in 2015, members who were within 10 years of their Normal Pension Age on 1 April 2012 were protected 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.

  From 1 October 2023, the LGPS rules changed to remove the discrimination. Younger members now also have underpin protection on the pension they built up in the remedy period. The new rules include much more detail about how the underpin works for different members.

• When is the remedy period?

  The remedy period runs from 1 April 2015 to 31 March 2022. Underpin protection finished earlier if you left the LGPS or reached age 65 before 31 March 2022.

• Am I protected by the underpin?

  You can use our ‘Am I affected?’ tool to find out if you are protected by the underpin.

  You are protected if you:

  • were a member of the LGPS or another public service pension scheme before 1 April 2012
  • were a member of the LGPS in the remedy period – 1 April 2015 to 31 March 2022
  • were under 65 for all or part of the remedy period, and
  • do not have a disqualifying gap. A disqualifying gap is a period of more than five years when you were not a member of a public service pension scheme.

  If you left the LGPS or reached age 65 before 1 April 2015, you are not protected.

  You will also be protected by the underpin if you:

  • were a member of the LGPS or another public service pension scheme before 1 April 2012
  • built up protected benefits in another public service pension scheme in the remedy period
  • join the LGPS after 31 March 2022
  • do not have a disqualifying gap, and
  • transfer those protected benefits to the LGPS.

• Does all membership count?

  If you were a member of a different public service pension scheme before you joined the LGPS, in most cases tis will only count for protection if:

  • your pension is being paid to you, or
  • you have a deferred pension in the other scheme.

  If you only have a right to a refund in the other scheme, or you have already taken a refund of contributions, this will generally not count.

  You protection could be affected if you have a deferred pension and you transfer it to a scheme that is not a public service pension scheme. This could create a disqualifying gap, which would mean that your LGPS pension is not protected.