The implementation of the McCloud remedy to unlawful discrimination in transitional protections in the Teachers’ Pension Scheme
The remedy for unlawful discrimination in the transitional protections in the Teachers’ Pension Scheme (TPS), often known as the McCloud remedy, is being implemented from 1 October 2023 onwards.
The McCloud remedy applies to all TPS members, who started in TPS pensionable service before 1 April 2012, with TPS pensionable service between 1 April 2015 and 31 March 2022 (the remedy period).
This includes teachers who have retired since 1 April 2015 with TPS pensionable service and also surviving adult and children pensioners of TPS members who have died during this time.
In brief, the remedy means that teachers, former teachers, retired members and survivors can elect to have their remedy period service in either their final salary TPS or the career average TPS. Details of the remedy are available on the TPS website.
There are three key actions as part of the implementation of the remedy which are now beginning to happen:
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All teachers and teacher pensioners with McCloud remediable service have been rolled back into the final salary scheme for their McCloud remedy service, opening up a window where affected serving teacher members can purchase scheme flexibilities or transfer in pension from other pension schemes;
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all new applicants for retirement with McCloud remediable service will have to exercise a McCloud remedy choice before their pension is processed;
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all teacher pensioners with McCloud remediable service (who started teaching before 2012), or their survivors, will be offered the option of having this service in either their final salary or career average scheme.
The NASUWT wishes to see members, former members and their survivors benefiting to the fullest extent from the McCloud remedy, increasing their pension wherever possible. However, the Union cannot provide any advice on the McCloud remedy, as, by law, this can only be provided by an Independent Financial Advisor (IFA).
Members should therefore not contact the NASUWT to discuss their McCloud remedy choice, or the career average flexibilities which have become available as a result of rollback to the final salary scheme, as the Union cannot provide any advice.
Members are advised to read thoroughly the following advice on the TPS website, which will be updated as the remedy is rolled out.
If members wish to receive any of this information in the Welsh Language, they should request this from the TPS, using the My Pension Online service which is available via the Teachers’ Pensions website.
If members, or former members, are not currently registered with Teachers’ Pensions’ My Pension Online service, they are advised to do so, as this is the key conduit by which members and former members will receive information about the implementation of the McCloud remedy.
If members wish to take financial advice, they should contact a regulated financial advisor. However, members should be aware of the criteria for the reimbursement of the costs of financial advice set out in the guidance on the TPS website.
The NASUWT has partnered with Wesleyan to provide financial advice to members and they can be contacted via their website.
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