Last reviewed 10 January 2022

The Department for Education (DfE) is seeking comments on proposed changes to the Teachers’ Pension Scheme Regulations to enact the first phase of what is known as the McCloud Remedy.

The consultation, details of which can be found here, remains open until 24 January 2022.

In April 2015, new schemes were introduced for each of the main public sector workforces — teachers, the NHS, the armed forces, firefighters, police, judiciary and civil service — following similar reforms for local government workers in 2014.

However, in December 2018, the Court of Appeal found in Lord Chancellor and Secretary of State for Justice v McCloud, The Secretary of State for the Home Department v Sargeant [2018] EWCA Civ 2844 (the McCloud judgment) that the proposed transitional protection unlawfully discriminated against younger members of the judicial and firefighters’ pension schemes, and also gave rise to indirect sex and race discrimination.

On 15 July 2019, the Chief Secretary to the Treasury made a written ministerial statement setting out that the Government considered that the Court of Appeal’s judgment had implications for all of the public service pension schemes and planned to come forward with proposals to remedy the discrimination across all schemes.

Changes to the teachers’ pension scheme (TPS) rules are necessary to address the age discrimination identified in the McCloud case.

The proposed changes to the regulations would mean the closure of the final salary sections of the TPS to all remaining members. All members would then be in the same section from 1 April 2022.

A further consultation will be held later this year which will relate to the second part of the McCloud remedy. This will provide members with a choice of benefits for the period 1 April 2015 to 31 March 2022.