Why have the valuations and the process to introduce improvements been ‘paused’?

Last updated: 12 Mar 2020

The Government has ‘paused’ the cost sharing mechanism on the basis that the remedy to the McCloud judgement will increase the costs of public sector pensions and this will be deemed as a ‘member’ cost for the purposes of the cost sharing mechanism.

We dispute that this is a ‘member cost’, that there is a need to pause the valuations and also that the McCloud judgement is taken into account once the valuations restart.

We’ve written to the Chief Secretary to the Treasury urging the valuations to be resumed and for the Government to concede that the costs of McCloud should be borne by the Government and not members. You can read our letter here. We are seeking legal advice and considering what action to take.