The Cabinet Office has confirmed it will continue with the proposed regulations needed to implement the second phase of the 2015 Remedy, also known as McCloud, for the Civil Service Pension Scheme1. The consultation outcome, published on 7 August 2023, states the regulations are expected to be laid in Parliament early in September and to become effective from 1 October 20231.
The McCloud remedy for public sector pensions concerns Civil Service Pension Scheme members with remediable service in the remedy period from 1 April 2015 to 31 March 20221. Under the draft regulations, affected members will be given a choice of their benefits for that period, selecting either legacy (PCSPS) or reformed (alpha) benefits1. The draft regulations use powers in the Public Service Pensions and Judicial Offices Act 2022 and the Public Service Pensions Act 20131.
The consultation ran from 9am on 6 March 2023 to 11:59pm on 14 May 20231. It received 107 responses: 102 individual scheme members, three unions, the Civil Service Pensioners' Alliance and one pensions consultancy1. The Cabinet Office said the majority of respondents supported the proposed remedy, and that the main focus of comments was on ensuring members had sufficient information to understand what the remedy meant, particularly in relation to making their choice1.
"After careful consideration of the responses received the Cabinet Office will continue with the proposed regulations. These are expected to be laid in Parliament early in September to become effective from 1 October 2023."
| Item | Detail |
|---|---|
| Remedy period | 1 April 2015 to 31 March 20221 |
| Choice for members | Legacy (PCSPS) or reformed (alpha) benefits1 |
| Consultation opened | 9am on 6 March 20231 |
| Consultation closed | 11:59pm on 14 May 20231 |
| Responses received | 1071 |
| Regulations expected to be laid | Early September 20231 |
| Expected effective date | 1 October 20231 |
Why it matters for households
The change affects Civil Service Pension Scheme members who have remediable service in the remedy period between 1 April 2015 and 31 March 20221. For those members, the regulations set out a choice between legacy (PCSPS) and reformed (alpha) benefits for that period1. The outcome document does not set out the value of either option for individual members, and no figures for individual outcomes have been reported1. The consultation response notes that the main focus of comments was on ensuring members had sufficient information to understand what the remedy meant, especially in relation to making their choice1. The regulations are expected to become effective from 1 October 20231.
What happens next
The regulations are expected to be laid in Parliament early in September 2023 and to become effective from 1 October 20231. The consultation response document, published alongside the outcome, runs to 38 pages and includes a list of respondents by organisation1. Further detail on how the choice will operate for individual members has not been reported in the consultation outcome1.
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