Treasury response to consultation on the McCloud Pension ruling

drummersdale

I have “skimmed” through the 72 page document published today https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/958635/Public_Sector_Pensions_Consultation_Response.pdf and arrived at the following conclusion.

It’s very complicated and will take ages to sort.

sammyjammy

Ha Ha I thought it was going to be "F off we've got no money now"

hugheskevi

It is probably easier to digest the Written Ministerial Statement instead, at least as an appetizer.

Marcon

drummersdale said:

It’s very complicated and will take ages to sort.

Well spotted! Indeed it will.

drummersdale

I tried the appetizer, was still hungry for information so swiftly moved onto the main course - which unfortunately gave me indigestion.

Dazed_and_C0nfused

What element gave you that feeling 

drummersdale

Pages 1-72 but that’s more down to my lack of understanding of the finer points of the remedy rather than anything else. I’m sure all will become clear over coming years.

jamjar92

The tapered protection says it been scrapped (LGPS), where pre 2008 was protected and post member for me was not. If I am reading it right there is protection to 31 March 22 under R85 rules, or this this going to be detailed later this year as indicated in 1.11?

Golactico

I'm no expert by a long stretch, but in a nutshell, I think this is what the decision means:

1. It affects anyone with service in a relevant public sector pension scheme prior to 01 April 2012 and also has a period of service between 01 April 2015 and 31 March 2022. 
2. As a result of the McCloud judgement, people within this scope are entitled to decide whether they want their pension during the period from 01 April 2015 and 31 March 2022 to be treated as being under their old pension scheme, or under the new pension scheme that they were transferred in to from 01 April 2015 (NB some people may actually be better off sticking with the the new scheme for this period).
3. All that the Consultation decision means is that these individuals don't have to decide now whether they want the period of service in question treated as being under their old or new scheme, but can wait until they are due to retire, when they will have clear and accurate figures of what each scheme will pay them for that period, and THEN decide which is best for them.

jamjar92

Golactico said:

I'm no expert by a long stretch, but in a nutshell, I think this is what the decision means:

1. It affects anyone with service in a relevant public sector pension scheme prior to 01 April 2012 and also has a period of service between 01 April 2015 and 31 March 2022. 
2. As a result of the McCloud judgement, people within this scope are entitled to decide whether they want their pension during the period from 01 April 2015 and 31 March 2022 to be treated as being under their old pension scheme, or under the new pension scheme that they were transferred in to from 01 April 2015 (NB some people may actually be better off sticking with the the new scheme for this period).
3. All that the Consultation decision means is that these individuals don't have to decide now whether they want the period of service in question treated as being under their old or new scheme, but can wait until they are due to retire, when they will have clear and accurate figures of what each scheme will pay them for that period, and THEN decide which is best for them.

Well summarised. For my case my Salary grade as not changed since 2012 (ignoring any cost of living rises). I am now assuming that if I decide at retire at 60 under r85, I can use get old membership rules until March 22 with no actuarial reduction. From 2022 until I retire reduction of 7 years. This surely as got to result in more pension for me?

femalemonarchfemalecanine

Golactico said:

I'm no expert by a long stretch, but in a nutshell, I think this is what the decision means:

1. It affects anyone with service in a relevant public sector pension scheme prior to 01 April 2012 and also has a period of service between 01 April 2015 and 31 March 2022. 
2. As a result of the McCloud judgement, people within this scope are entitled to decide whether they want their pension during the period from 01 April 2015 and 31 March 2022 to be treated as being under their old pension scheme, or under the new pension scheme that they were transferred in to from 01 April 2015 (NB some people may actually be better off sticking with the the new scheme for this period).
3. All that the Consultation decision means is that these individuals don't have to decide now whether they want the period of service in question treated as being under their old or new scheme, but can wait until they are due to retire, when they will have clear and accurate figures of what each scheme will pay them for that period, and THEN decide which is best for them.

thank you for this clear summary - saves me wading through it