The Home Office has launched two consultations on plans to enact the second phase of the McCloud/Sargeant case remedy in relation to firefighters’ pensions and police pensions.

After the Public Service Pensions and Judicial Offices Act 2022 provided an overarching framework to allow public service pension schemes to remedy the impact of unlawful age discrimination, the consultation is now seeking views on plans for second part of the remedy.

This second retrospective phase aims to remedy the discrimination that had taken place between 1 April 2015 and 31 March 2022.

In particular, the consultation outlines plan to amend scheme rules to remove the effect of the transitional protections seen between 1 April 2015 and 31 March 2022, the remedy period, and implement provisions for a deferred choice underpin (DCU).

The DCU will give members a deferred choice of pension benefits at their point of retirement for the remedy period, which is the period during which discrimination took place.

Under the remedy, eligible members will be able to choose to receive legacy pension scheme benefits or benefits equivalent to those available under the 2015 reformed scheme for service during the period 1 April 2015 to 31 March 2022.

Retrospective changes to regulations will also be made to correct any overpayment or underpayment of pension benefits or member contributions, including benefits or contributions paid to or by a member because of their choice.

In addition to this, the regulations will facilitate the payment of appropriate compensation to address financial loss arising from the discrimination or operation of the remedy.

The consultation revealed that there are also other areas where the Home Office is considering whether further amendments to the regulations may be needed, beyond those in the published draft Statutory Instrument being consulted on.

The legislation required to amend the scheme rules is expected to be made in September 2023, with the retrospective remedy itself expected to come into effect from 1 October 2023.

Plans for the remedy were initially announced after a 2018 High Court ruling found that the 2015 changes to public sector schemes were discriminatory on the grounds of age.

However, although the Home Office highlighted the retrospective remedy as the "final phase" of removing this discrimination, the government is also currently facing a judicial review over its proposed method of paying for costs incurred by the McCloud judgment.

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