In 2014 the LGPS changed from a final pay scheme to a career average revalued earnings (CARE) scheme, meaning members' pensions would build up annually based on their pay for each year. The other public service pension schemes followed a year later. At the time a promise was made that no member within 10 years of retirement would be worse off as a result of the changes. To ensure this commitment was met protections were put in place for certain members, based upon their age on 1 April 2012.
In 2018 the Court of Appeal found that younger members had been discriminated against because the protections did not apply to them. Over the years that followed, the government took steps to address the findings of the McCloud case in public service pension schemes to extend protection to those the courts had found had been treated unlawfully.
In September 2023, the Government made regulations to address the discrimination younger members experienced in the LGPS. These regulations implemented the McCloud remedy meaning that those individuals originally discriminated against will receive the same protection for their benefits that older members previously enjoyed. These changes are retrospective, meaning that those members affected by the case who have already taken their LGPS benefits will have their pensions reviewed to see if they should receive a retrospective addition.
The changes are also automatic meaning there is nothing you need to do for the remedy to be applied to your pension.
To find out more about the McCloud Remedy and if you are affected, please visit our Underpin protection page.