McCloud was a high court judgment that found age discrimination in the protection given to older members of public service pension schemes, when the pension schemes reformed in 2014 and 2015.
The Government announced in May 2021 that, following the latest consultation on how to rectify the age discrimination identified in the McCloud judgment, it intends to extend the statutory underpin in the LGPS, to all members who:
(1) Were contributing to the Scheme on 31 March 2012, and at some point between 1 April 2014 and 31 March 2022, and
(2) Don’t have a break in contributing membership after 31 March 2012 for more than 5 years in a public service pension scheme
The Government also issued draft Regulations with their consultation, though these Regulations are not expected to come into effect until 1 April 2023. However, the pension industry believes that a further consultation will be announced by the Government in the coming months, which will give greater clarity on how the revised statutory underpin will work.
We’ll keep our website updated when we have further information, so watch out for this online and in future newsletters.
For more information about McCloud and its history read our previous update.