The Pensions Ombudsman will take “significant determinations” around fixing age discrimination in public sector schemes as it now expects them to have progressed their implementation of the McCloud remedy.

TPO published an update last week on how it deals with McCloud complaints, so-called after the 2018 judgment. The courts found that the government had discriminated against younger members in protecting those closer to retirement from the 2015 benefit changes in public service schemes.

So far, TPO only looked at McCloud complaints in limited circumstances, but this is changing. Its approach is being developed as milestones in the remedy process have now passed and TPO expects schemes to have an organised approach to dealing with remedy implementation.

The ombudsman said: “We are aiming to deal with McCloud complaints by producing significant determinations on key issues. This will involve issuing determinations on cases concerning an issue or issues affecting several members across several schemes.”  

These determinations will show TPO’s position on key McCloud issues. They will act as guides and inform the approach schemes should take in resolving McCloud complaints internally, TPO explained. If internal resolution is not possible, TPO will still be able to investigate complaints, it noted.  

It is currently considering what McCloud cases are suitable for significant determinations and “will be accelerating the investigation of those complaints”, TPO added. Where cases differ on their facts from any of the significant determinations, they will be dealt with on an individual basis. 

Among others, the ombudsman has received complaints concerning delays by the Scottish Public Pensions Agency in relation to the McCloud remedy. MSPs have repeatedly criticised the SPPA for a series of delays in fully implementing the remedy.  

The funds for Buckinghamshire and Leicestershire have extended their implementation deadline until 31 August 2026, while Nottinghamshire’s pension fund has also reported delays. 
 
Delays in the NHS Pension Scheme led the government to adjust the scheme’s delivery timetable in spring last year. 

Some senior doctors have received letters from HMRC demanding payment of interest charges for 'overdue' tax on the McCloud remedy. The Treasury has agreed to compensate for interest where this has been incurred because of a delay in issuing remedy statements. In a convoluted process, members who receive a notice from HMRC that they owe interest can make an application for compensation under the NHS Cost Claim Back Scheme within 12 months of receiving their statement.