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The McCloud Case

The last newsletter mentioned the outcome of this case – the successful challenge by the Judges and the Fire Brigades to the interim arrangements introduced alongside the new 2015 public sector pay schemes.

Since then, the government has accepted that the ruling does read across to the rest of the public sector and the MOD has issued a statement on the matter which you can read here 

We remain concerned that the furore surrounding McCloud is in some cases creating false expectations. Since it is public knowledge that the MOD has set aside £1.9 Billion to cope with the fallout from the case, it is not unreasonable to expect that a large number of people will be eligible for compensation. However, rectifying the problem is going to prove extremely complex and although most people on the older schemes were generally better provided for, there are some provisions within the AFPS 15 scheme which are improvements on the old schemes; so there is no quick fix. Not everybody will be better off as a result of the judgement and it is worth noting the key phrase in the DIN which states that:

‘Service Personnel will not see any reduction to the pensions they have earned/built up to date, irrespective of the pension scheme they are in.’

So no one will be worse off, but it is still unclear who will benefit and by how much and when.

Finally, a number of members have enquired as to whether they should submit a ‘complaint’ in order to ensure that their case is heard – we advise most strongly against doing so, as the MOD already have their ‘test’ cases for examination during the establishment of any remedy.  Submitting an additional ‘test’ case triggers a series of formal protocols that the MOD are obliged to follow; this distracts the MOD team dealing with McCloud in the round and adds unnecessary delay.

Current projections suggest it will take several years to deal with the fallout from the judgement. Our advice – keep calm and carry on. If you benefit in due course from the Mc Cloud judgement, treat it as a bonus; meanwhile continue to plan on what you know, not what might be.

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