The government has launched a consultation on changes to the Local Government Pension Scheme in England and Wales (LGPS) relating to the McCloud remedy.

The consultation, which closes on 30 June 2023, is seeking views on draft scheme regulations that would implement the remedy, as well as seeking further views on a number of specific issues.

In particular, the government is seeking views on aggregation, and determining the rules applicable to decide whether a member with multiple LGPS memberships has underpin protection in some or all of these.

It also seeking further views on club transfers, flexible retirement, divorce, and injury allowances.

In a few other areas, although the policy approach has been determined, the consultation is seeking technical comments and comments on implementation.

This includes the approach to excess teacher service, the circumstances where a member may be paid compensation where they have suffered a loss relating to the age discrimination found in the McCloud case or the McCloud remedy, and the interest terms that will apply where payments are made later than would have been the case, due to the McCloud discrimination.

The Department for Levelling Up, Housing & Communities also confirmed that, during the consultation, it will look to establish a guidance working group with the Scheme Advisory Board to consider which elements of the McCloud remedy may require central guidance from the Secretary of State or the board and what that guidance should say.

Following consideration of the comments received in response to this latest consultation, the DLUHC said that it will take steps to finalise the draft regulations and make these in early September 2023, with the final regulations to come into force on 1 October 2023.

Commenting on the latest consultation, Aon senior consultant, Virginia Burke, stated: “The government has given a well-considered response to contentious and complex issues such as aggregation and flexible retirement.

“We welcome the fact that government is seeking further views on these areas to make sure it gets the policy right – the last thing LGPS members and administrators need are further tweaks down the line.”

Share Story: