Source · Select Committees · Public Accounts Committee
Recommendation 20
20
Furthermore, government’s response to the McCloud judgment has potential to exacerbate the problem.
Conclusion
Furthermore, government’s response to the McCloud judgment has potential to exacerbate the problem. Members affected by the McCloud remedy will be asked to make a complex decision about their pensions, which may include balancing between the level of pension they retire with and when they wish to retire. HM Treasury told us that from 2024 it plans to require all schemes to include additional information as part of their annual benefit statement. This will show the equivalent information for the legacy schemes as well as the reformed schemes so that, throughout the remaining period of an individual’s career, they can see how the two schemes change on an annual basis.44
Government Response
Acknowledged
HM Government
Acknowledged
For active and deferred members, the Bill introduces the ‘deferred choice underpin’ as set out in the government’s consultation response. Under this approach, members can make their choice over which set of benefits to have earned during the remedy period at retirement, when they will have a greater certainty over which option is most advantageous for them. This means the impact of the McCloud judgment on affected individuals will be resolved as they reach retirement. This approach was strongly supported at consultation.