The McCloud Remedy for the LGPS

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When public service pension schemes changed from final salary schemes to career average schemes in 2014 and 2015, older members were protected from the changes.  In 2018, the Courts found that younger members had been discriminated against because the protections did not apply to them.
The LGPS rules changed from 1 October 2023 to include what is called the McCloud remedy. The changes remove the age discrimination found in the McCloud court case.
In simple terms, when a protected member takes their pension, the pension fund will compare the career average pension built up in the remedy period with the pension they would have built up in the final salary scheme. If the final salary pension is higher, the difference is added to the pension of the protected member - this is called 'the underpin'.
You do not need to take any action. If you qualify for protection, the underpin will apply to you automatically.
Not all LGPS members are affected by the change, and you can find out whether you are affected by clicking here
More Information about the McCloud Remedy is available on the national LGPS members website
We also provide the following factsheet that provides a useful summary of the McCloud Remedy that you can take away and keep for future reference.