The Government has launched a consultation seeking views on changes to the Local Government Pension Scheme (LGPS).
In 2014, the LGPS changed from a final salary scheme to a career-average scheme, which included transitional protection known as an ‘underpin’ for members closest to retirement.
In 2018 the Court of Appeal ruled that these changes unlawfully discriminated against younger members.
In order to remedy the findings of the ‘McCloud’ case, the Government proposed extending ‘underpin’ protection to the younger members of the scheme.
The Government’s estimate of the costs of the ‘McCloud remedy’ for the LGPS suggest a total cost in the coming decades of £1.8bn.
However, costs to individual employers will be based on local valuations, taking into account their memberships’ experience, and so they will vary.
The consultation on the ‘McCloud remedy’ will run from 30 May 2023 to 30 June 2023.
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