Public Pension Consultation – McCloud Judgment

McCloud Judgment – Public Consultation

The Department of Finance is currently consulting on options to address discrimination identified by the Courts in the transitional arrangements which were part of the 2015 reform of public service pension schemes.

The Board, as the Scheme Manager of the Police Pension Scheme, is keen that any interested parties have an opportunity to provide a view to the consultation being progressed by the Department of Finance.

The consultation closes on 18 NOVEMBER 2020 at 23:59 and further details are below.

Background

In 2015, the Government introduced reforms to public sector pension schemes. This resulted in establishing a number of new reformed schemes across the public sector. For police officers, this scheme was the 2015 CARE Scheme. Depending on how close they were to scheme retirement age, existing police officers who were in post on 31 March 2012 either:

  • moved into the 2015 CARE Scheme straight away
  • remained in their old scheme (transitional full protection), or
  • had a staggered move into 2015 CARE Scheme (taper protection)

All police officers who joined after 31 March 2012 moved into the CARE scheme in 2015.

In December 2018, the Court of Appeal held the transitional protection offered to members who were closer to retirement age gave rise to unlawful discrimination, as younger members were not eligible to receive it. This is known as the ‘McCloud Judgment’. A written ministerial statement published on the 15 July 2019 confirmed that, as transitional protection was offered to members of all the main public service pension schemes, including the 2015 CARE Scheme, the government intends to remedy the difference in treatment across all those schemes.

Consultation

The Department of Finance is now consulting on options to address the discrimination identified by the courts in the 2015 pension reforms. The consultation document itself, a Public Service Pensions Leaflet which sets out a summary of the proposals and an accompanying Policy Screening form can be found at https://www.finance-ni.gov.uk/consultations/consultation-proposed-changes-transitional-arrangements-2015-schemes.

Further information on the consultation can also be found in the consultation FAQs at https://www.finance-ni.gov.uk/articles/faqs-public-service-pensions-consultation

Responses to the consultation can be submitted by email to DoFpensionspolicy@finance-ni.gov.uk or alternatively by post to:

Public Service Pensions
Policy and Legislation Branch
Pensions Division
Waterside House
75 Duke Street
Londonderry
BT47 6FP