McCloud and the LGPS
Background
In 2014, the LGPS changed from a final salary scheme to a career average scheme. Protections were put in place for older members. This allowed pension funds to work out if their benefits would have been better in the final salary scheme or the new scheme. They were then paid the higher of the two.
A court ruling, often known as the McCloud judgement, decided that the rules were unlawful and unfair to younger members.
LGPS McCloud remedy regulations
The LGPS McCloud remedy regulations become law on 1 October 2023. From this date we’ll work out your pension under the new regulations. For any estimates or payments made before 1 October 2023, we’re waiting for guidance on how to assess whether the increase applies to you.
What do I need to do?
You don’t need to do anything. We’ll apply the increase to your pension if the regulations affect you. If you’re:
- about to retire - we’ll check your pension and apply the increase if the regulations apply to you.
- already retired - we’ll contact you to let you know if there’s an increase to your pension.
- not retired yet – we’ll show any increase to your pension in your 2025 statement.
Where can I find more information?
You can find a video, some frequently asked questions, and a tool to find out if you may be affected on the LGPS members website.