Govt to launch consultation following McCloud case

The government plans to launch a consultation on addressing age discrimination identified in the McCloud court case while ensuring members keep all their benefits.

In response to a parliamentary question, Economic Secretary, John Glen, said that schemes are currently discussing “high level proposals” with employer and member representatives to address these concerns.

These discussions will “inform a full public consultation”, he noted.

In December 2018, the Court of Appeal ruled in favour of firefighters and judges who argued that changes to their pensions constituted to unlawful age discrimination and confirmed that the ruling would be applied across all public sector schemes.

The changes, imposed in 2015, stipulated that older firefighters and judges could stay in the existing and better pension scheme, and younger members had to transfer to a new and worse scheme, causing financial losses.

Glen added: “The government has committed to addressing the discrimination identified in McCloud in all public service pension schemes, while ensuring all members can keep their accrued benefits.

“In addition, Employment Tribunals are considering the remedy for claimants in the various cases.”

Labour MP for Wirral South, Alison McGovern, had asked when the 2016 valuations for public sector pension schemes would resume, after they were paused in January 2019 due to the uncertainty around benefit entitlements following the McCloud ruling.

Glen responded: “While these processes are underway, the cost control mechanism remains paused as the value of pension schemes to members cannot be assessed with certainty.”

    Share Story:

Recent Stories

Managing volatility
In the latest Pensions Age podcast, Laura Blows speaks to Cambridge Associates head of European pension practice, Alex Koriath, about the Covid-related market volatility and how pension funds can prepare for the challenges ahead

De-risking options for pension schemes
In this latest Pensions Age podcast, Linklaters' Sarah Parkin talks to Laura Blows about the wide range of choice available to pensions schemes for the partial, or full, removal of their risks

Risk transfer opportunities
Laura Blows speaks to Lisa Purdy, Head of Fiduciary Distribution at Legal & General Investment Management and Gavin Smith, Pricing and Execution Director - UK PRT at Legal & General, about the impact of the recent market volatility on the bulk annuity and risk transfer market and the potential opportunities for the future

Bulk annuities during coronavirus
Laura Blows speaks to Just business development manager Prash Mehta about the impact of coronavirus on transactions