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The McCloud Judgement

The McCloud judgement is a ruling made by the court of appeal on 20 December 2018.

The judgement found that when the public service pension scheme changed from a final salary scheme to a CARE scheme in 2014, they had discriminated on the grounds of age, by only providing protection for older members.

All members were automatically moved across to the new scheme, but older members, closer to retirement, were given additional protections, called the Underpin. These protections ensured that members did not receive less pension in the new scheme, than they would have in the old scheme.

You can find out more about these protections in the scheme guide.

Proposed changes

On 15 July 2019, the Government made a statement to the treasury. This announced that, as a result of the McCloud judgment, it would ‘take steps to remove the discrimination.’

The Government has confirmed it will be applied to all public service pension schemes. These protections in the LGPS will need to be revised. As a result, if you’re affected by the changes, how much pension you get may change.

A number of changes were proposed as a result of a 2020 consultation on the McCloud judgement.

You can read more about the proposed changes in Luke Hall MP's ministerial statement.

On 19 July 2021, the Public Service Pensions and Judicial Offices Bill was put before Parliament to amend the Public Service Pensions Act 2013 and fix unlawful discrimination in public service pension schemes.

It is expected that further consultations and draft regulations will be released over 2023.

It was initially expected for the changes to take place from April 2023, however, we now do not expect the regulations to apply until October 2023.