McCloud judgment

Background

In 2015 the Government introduced reforms to public sector pensions, meaning most public sector workers were moved into new pension schemes in 2015.  Most civil servants were moved into the alpha pension scheme.

Mccloud Judgement Image

In December 2018, the Court of Appeal ruled that the ‘transitional protection’ offered to some members of the judges’ and firefighters’ schemes, as part of the reforms, amounted to unlawful discrimination.  The details of the ruling are available here:

Court of Appeal Judgment

On 15 July 2019 the Government announced that they accept that the judgement applies to all of the main public service pension schemes, including the Civil Service Pension schemes.

Given this decision, the Civil Service Pension scheme will apply the ruling to cases which apply to the Civil Service Pension scheme and work with all parties involved to ensure a resolution is found.

A copy of the statement is available via the link below:

Written Ministerial Statement – Public Service Pensions

At this stage we can’t say what this might mean for your pension, as the tribunal must agree the next steps, and it may be some time before the position becomes clear.  We will provide further information as soon as it becomes available.

The tribunal will require steps to be taken to provide a remedy to claimants who suffered discrimination. The Government has confirmed that any necessary changes to pension arrangements instructed by the tribunal remedy, will also apply to all members with relevant service, not just those who have lodged legal claims.

Please be assured that the pension you have earned to date is safe.

Scheme valuation

The Government was undertaking valuations of public service pensions including assessing the cost of schemes against the ‘cost cap’, which could have resulted in automatic changes to employee contributions or benefits.

On 30 January the Government announced a pause to the cost control part of the valuations of Public Service Pension schemes, following the Court of Appeal’s judgment in McCloud and this remains the case.

If you wish to review the written ministerial statement it can be found at: 

Written Ministerial Statement: Pensions