TPO update on McCloud determinations

The Pensions Ombudsman (TPO) has recently issued an update on its approach to McCloud complaints. A copy of the update is available here: TPO McCloud Update - April 2026

The McCloud and Sargeant cases were, as will be remembered, in relation to the 2015 public service pension scheme changes where the schemes moved from final salary to career average revalued earnings (CARE) benefit structures. As part of those changes, transitional arrangements were included to seek to mitigate the impact of the changes on older members who were closer to retirement.  Those transitional arrangements were ultimately found to be directly age discriminatory and were not objectively justified by the Government. 

Previous TPO guidance 

Previously, TPO had produced a factsheet in July 2022 (a copy of which can be found here: TPO approach to McCloud and Sargeant age discrimination complaints ).  This set out its views on what the relevant public service pension schemes and their affected members could do, considering the decision in the cases and the Government’s intention at the time to legislate to remedy the age discrimination identified by the Court of Appeal’s decision.   TPO’s approach was that, given the situation at the time, it would not investigate complaints or disputes relating to remedying age discrimination in public service pension schemes but instead would look carefully at the facts of each case before making any decision.  It also confirmed examples of cases where it may investigate included:

• allegations of maladministration (such as a failure to explain what is going on and/or engage with an affected member)      
• where a member is suffering severe financial hardship or other serious injustice and the relevant public service pension scheme is not putting in place any interim arrangements to address the injustice within a reasonable period. 

To the extent that any claims were brought, they would also be subject to TPO’s usual jurisdictional checks. 

This effectively meant in reality that TPO would only investigate McCloud related complaints in limited circumstances. 

New TPO Guidance

While TPO’s approach back in 2022 reflected the fact that the Government was still in the process of introducing legislation to remedy the age discrimination, and the relevant public service pension schemes needed time to change their systems and procedures to implement the remedy, the new approach confirmed in the updated guidance takes into account that milestones in the McCloud remedy process by the public service pension schemes have now passed.  TPO is therefore expecting that those public service pension schemes should be making progress on implementation of the remedies applicable to those schemes and should have an organised approach to doing so. 

As a result, TPO is shifting its approach to dealing with McCloud complaints by instead producing Determinations on key issues.  This will involve cases where there is an issue or are issues affecting several members across several different public service pension schemes. 

As these key issue Determinations will set out the TPO’s position, it is expected that they will act as guides and inform the approach that the public service pension schemes should take in resolving complaints via their own internal processes (including Internal Dispute Resolution Procedures (IDRPs)). 

TPO is currently undertaking a process to identify cases which are suitable for significant Determinations on the relevant key issues.  Once Determinations are made, they will be updating their guidance and (if appropriate) providing further commentary following those Determinations. 

Importantly, TPO has also confirmed what it expects from public service pension schemes: 

• Member communication is key – communicate with members on the steps being taken to implement the remedy
• Consider the approach to immediate detriment cases including any options for prioritising such cases
• Signpost members to IDRPs and to TPO on completion of IDRP
• Fully investigate and address complaints raised at IDRP
• Engage with The Pensions Regulator if extensions to statutory deadlines may be necessary
• Look out for significant Determinations and updated information from TPO

Comment 

Given that matters have progressed since 2022, the relevant legislation to remedy the discrimination is now in place for the public service pension schemes and they are working through the implementation process, it is not unexpected (and is instead very useful) that TPO has updated its guidance in this area.  It will also be beneficial to see the Determinations on key issues once these are made by TPO as this will assist schemes further with both the implementation of the remedy and dealing with any member complaints which may arise as a result of this (and thereby, hopefully, avoiding significant numbers of complaints proceeding to the TPO). 

Article written by Alec Bennett