Teachers' Pensions
mccloud update
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Government update on McCloud 25 March 2020

We’ve previously updated that Government is working to address the discrimination caused by transitional protection arrangements contained within the main public sector schemes including the Teachers’ Pensions Scheme.

On 25 March, the Government published a Written Ministerial Statement to provide an update on the progress it’s making to address the discrimination.

This is the key information from the update:

  • The Government has reiterated its commitment to removing the discrimination across all public service pension schemes for all affected scheme members, not just those who have lodged claims. This means members don’t need to make a claim in order for the eventual changes to apply to them.
  • There have been technical discussions with member and employer representatives to seek their views on the Government’s high-level proposals. These initial views are being considered and continue to develop the technical design elements of the proposals. The detailed proposals will be published later in the year and will be subject to a public consultation. This will be your opportunity to provide feedback on the proposed options.
  • The Government is reassuring members that their pension entitlements are safe. The proposals being considered will allow relevant members to make a choice as to whether they accrued service in the Final Salary or Career Average arrangements for periods of relevant service, depending on what is better for them.
  • Further detail will be provided later in the year, but if a member’s tax position changes as a result of the proposals, the Government may also consider whether previous tax years back to 2015-16 need to be re-opened to address pension specific tax matters. It’s therefore important for members to retain all paperwork relating to their pension.
  • In January 2019, the Government paused the cost control mechanism in public service pension schemes due to uncertainty about benefit entitlements arising from the McCloud judgment. Alongside its proposals for addressing discrimination, the Government will provide an update on the cost control mechanism.

The full statement can be found here. We’ll continue to update information on our website as necessary.

Last Updated: 27/03/2020 11:30

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