Pension Matters

--- The McCloud Judgement

Page updated on 27th August 2021

The latest AFPS Quarterly Review has stated that things are progressing and that the IT system is being updated.

Once the automated processes are updated, Service Personnel will receive a Benefits Information Statement to reflect the move back to legacy pension schemes. Also, a pension calculator will be made available soon so that you can see how the scheme may affect your pension benefits.

More details can be found here.


Back in 2015, the Coalition Government, in negotiation with trade unions and staff associations, agreed to exclude those closest to their retirement age from proposed pension reforms, as they had least time to prepare. This difference in treatment for certain members was later found to unlawfully discriminate, in particular against younger members. Since the Court’s judgment, the government has considered how to address this problem and has published a consultation document entitled;

Public service pension schemes:

Changes to the transitional arrangements to the 2015 schemes

You can read the full consultation document here.

The two types of benefits mentioned are Reformed Schemes and Legacy Schemes. Most of us will be on the legacy pension scheme.

In simple terms, in order for the government to resolve this issue, they will give every pensioner a choice of benefits for those who may have unknowingly lost out financially and it will be up to the pensioner to decide which of two options is better going forward. The proposals will apply to all members who were in service on or before 31 March 2012 and on or after 1 April 2015. This is irrespective of whether they have submitted a legal claim or not, or whether they are currently an active, deferred or pensioner member.

So, there is no need to panic and no need to worry about it at all. Everything will be explained in clearer language as and when notifications are sent out to individuals. Given the numbers involved, I expect this will take some time. There will also be plenty of FREE advice from HM Treasury and other reputable organisations. There is no roadmap in the document so it is difficult to say how long we have to make up our minds but it looks like the 1st April 2022 is the chop date – the implementation date. The diagram below  shows you how the process will work.















As always, I would issue a warning for all to be aware of scammers or people/organisations who will offer to sort it out for you in return for a small fee. Please seek proper advice.

Either that or you can ask the audience, phone a friend or do 50:50! 

The AFPS Quarterly Digest (May 2021) has stated that a dedicated edition will be sent out later this year containing more details.