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13 March 2020

McCloud Judgment - Scheme Advisory Board (SAB) update

The ‘McCloud judgment’ was a Supreme Court case in which the Court ruled that the additional final salary protections that were given to certain older members of public service pension schemes were age discriminatory.

The judgement applies to all public service pension schemes, including the LGPS, and the inequalities identified must be remedied. So, if you’re affected by the McCloud judgement, you don’t need to make an employment tribunal claim; you’ll automatically receive any uplift required to remove the inequality that’s been identified.

Although we will provide an uplift if it’s required, there’s still more detail to be clarified. The Scheme Advisory Board (SAB) recently updated their website in relation to the McCloud judgement and here’s some important points from their latest update:

  • The SAB is confident that the remedy for the LGPS (and, therefore, the EAPF) will provide affected younger members with protection that’s the same as that provided to older members

  • The protection that’s likely to apply to affected younger members will cover the same period of time for which older members received protection, and will provide members with the higher of:
    •  

    • The benefits payable under the current rules, and
    • The benefits that would’ve been paid if the Scheme hadn’t changed in 2014. 
    •  

    This protection will apply automatically and members who meet the qualifying criteria don’t need to take any action.

  • It’s important that members are aware that many won’t see an increase to their pension benefits. For other members, any increase is likely to be small because of low salary growth since the new schemes were introduced.

  • Changes to the Scheme will be backdated to April 2014 and will apply to qualifying members who left the LGPS after that date. Implementing and communicating the changes will be extremely challenging, but the SAB will update members when they know more about what’s happening and when.   

Some claims companies are actively encouraging LGPS members to lodge an employment tribunal claim. These claims could be costly and are unnecessary because, if you’ve been affected by the McCloud judgement, you automatically benefit from any protection that’s provided as a result of this judgement; you don’t need to make an employment tribunal claim to secure your entitlement.

We’ll keep you updated as soon as we have more information.

Last updated: 13/03/2020

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