Government consultation response, July 2023
If you were a member of the TPS on 31st March 2012 and had continuous service until at least 1st April 2015, you are eligible for ‘remedy’ for the period April 2015 to March 2022. This follows a ruling in the McCloud case that transitional arrangements (which were intended to protect older scheme members) amounted to age discrimination.
If you have not yet taken your pension you will be asked, when you apply for your pension benefits, to choose between the final salary or career average calculation for the seven year remedy period. Members who have already retired (or, if they have passed away, their next of kin) will be contacted as soon as possible to make the choice.
TPS will provide a Remediable Service Statement to inform members’ decisions. The RSS will be issued with annual updates and will always be available through members’ My Pension Online accounts.
There are provisions for special cases, e.g. members who made use of scheme flexibilities or have taken ill-health retirement. There are also provisions for where the changes result in money being owed to or by TPS.
The government’s full response document is here.
Since this is about payment of benefits, we does not think it will immediately affect contribution rates. It is likely to increase the scheme’s overall liabilities, which will be reflected in the next revaluation.