McCloud Age Discrimination Case

What is it?

When Public Sector Pension Schemes (PSPS) changed from Final Salary schemes to Career Average schemes in 2014 and 2015, older members were offered protection from the effect of the changes. However, in 2018, the Courts found that younger members had been discriminated against because these protections did not apply to them. 

Although not all members are affected by the changes to the scheme, the LGPS regulations changed on 1 October 2023 to remove this age discrimination. This is called the McCloud Remedy. 

Active and Deferred members

If you are in scope for the McCloud remedy your 2025 annual benefit statement will include the value of the McCloud remedy underpin (the current amount by which your final benefits will be increased). For most members this will be £0.00.

The McCloud remedy underpin information will not be included for active or deferred members with a Pension Sharing Order (PSO) or who have a Club transfer in from another PSPS. Members in these groups will receive a covering letter with this years statement explaining why we haven't been able to produce this information yet. The McCloud remedy underpin will be included in the 2026 annual benefit statements which will be available by 31 August 2026. 

Pensioner and beneficiary members

Work is in progress to ensure that any benefits in payment have also had the McCloud remedy applied. If you are due an increase to your benefits, you will receive a letter details the adjustments which will be paid to you before 31 August 2026. 

If you have membership in any PSPS before you joined the LGPS and you have not transferred it to the LGPS then you may need to complete a McCloud Pension History form. The notes on the form explain exactly who needs to complete it. 

You do not need to complete the McCloud Pension History form if:

  • you first joined the LGPS or a public service pension scheme after 31 March 2012
  • you left the LGPS or reached age 65 before 1 April 2014
  • you are a councillor member of the LGPS, 
  • you joined the LGPS after 31 March 2022, 
  • you joined the LGPS before 1 April 2012 and have no gaps over 5 years in your membership of the LGPS or a public sector scheme. 

You do not have to do anything else. Hampshire Pension Services will automatically contact everyone who is affected by the Remedy. We have many cases to deal with so it will take a while to contact affected members. Your 2025 annual benefit statement will contain information on the Remedy.

More information about the McCloud remedy can be found on the LGPS members website The McCloud Remedy :: LGPS 

The Local Government Pension Committee (LGPC) and Affinity Connect have collaborated to offer Members of the LGPS the opportunity to learn more about the McCloud Remedy and how it might impact their pension benefits. If you are interested in learning more, visit McCloud Remedy webinars for information and links to register for a webinar. 

Complete a short quiz on the LGPS website to see if you are affected by the McCloud Remedy LGPS (E+W) McCloud Remedy (2023). This page gives a good explanation of the McCloud Case and also deals with frequently asked questions. 

Or you can read our leaflet: LGPS McCloud Remedy Factsheet

We are aware that third party organisations are contacting members of PSPS, such as the LGPS, selling their help in claiming the 2015 Remedy (McCloud) benefits. 

Hampshire Pension Services, will not request a fee  for providing this information. You do not need to go through a third party  to claim these benefits and we will contact you in due course if you are affected by the McCloud Remedy. 

Please remember to stay vigilant. If you are unsure or have any concerns over a potential scam, please contact us for clarification.  

The Pensions Ombudsman has produced a factsheet to clarify their approach to complaints relating to the McCloud Case, see: Pensions Ombudsman McCloud fact sheet - July 2022