The Local Government Pension Scheme Advisory Board have issued an update regarding the McCloud remedy which can be found on their website.
The highlights of the update are:-
- High level discussions are ongoing with the Government and the Scheme Advisory Board about what McCloud means for the LGPS
- Protections will be automatic - members do not need to make an employment tribunal claim
- The Government has confirmed that the McCloud judgment applies to all public service pension schemes. Despite this, companies are actively encouraging members of these schemes to lodge costly claims.
- It will only affect a small amount of individuals
- The Scheme Advisory Board will work with the Government to ensure the changes to the LGPS are fully implemented and members automatically receive their protections
- Changes will be backdated to 2014 and will affect members who left/leave employment after 31 March 2014
- The Scheme Advisory Board has set up an implementation group to assist LGPS administering authorities and employers with this challenge.
Further to the Scheme Advisory Board's update, a statement from the Minister has been released which can be found on the parliament.uk website.
It explains the work which is being carried out to reach a resolution and offers reassurance that members' pension entitlements are safe. The proposals the Government is considering would allow relevant members to make a choice as to whether they accrued service in the legacy or reformed schemes for periods of relevant service, depending on what is better for them. The Government is hoping to provide more detail later in the year.
Remember, you do not need to take any action as the Government has confirmed that the McCloud judgment applies to all public service pension schemes and individual claims are not required.
Further information can also be found on the Local Government Pension Scheme national website for members.
For more information on the affect of McCloud, see: