We’re committed to delivering a quality service to all our members and as part of this we’d like to inform you of some new requirements we’re putting in place as part of the ‘McCloud Remedy’ which all public sector schemes must comply with.
The Government has issued guidance to validate service history information on all protected members’ records relating to the McCloud Remedy. LGPS rules changed from 1 October 2023 because of the McCloud Remedy. The changes are backdated to 1 April 2014 when the career average scheme started.
- What is the McCloud Remedy?
- What are we doing about it?
- What does this mean for you?
- More help and information
What is the McCloud Remedy?
The McCloud Remedy is designed to remove any age discriminations and give younger members the same protections which have been awarded to other members. All public sector pension schemes across the UK are affected by this issue and we’re working resolutely to resolve any delays you might be experiencing as a result. More information on the McCloud Remedy can be found on the LGPS Member website.
What are we doing about it?
We’re working with our software suppliers to improve our pensions software to allow for the changes required by the McCloud Remedy. This means we’ll be able to futureproof our processes so they can better serve you in the long run. Our main aim is to make sure your benefits aren’t impacted.
What does this mean for you?
The Government has issued guidance to validate service history information on all protected members’ records relating to the McCloud Remedy. If you fall under these protections, you may experience some delays in response to your queries. Rest assured your benefits won’t be negatively impacted as a result of implementing the McCloud Remedy. We’ve provided more specific information on different scenarios below.
Interfund Transfer
The Fund is experiencing some delays when processing transfers between LGPS Funds as a result of updating our systems to meet the new requirements. Member records for these types of transfers will be flagged to make sure these are processed as soon as possible following our new systems being fully up and running.
Club Transfer
The way transfers between public sector pension schemes are calculated has changed and we’re working hard to update our systems to meet these changes but we haven’t been able to process requests as quickly as we’d like. We have written to other public sector schemes facing the same issues to request they allow extensions to transfer within a 12-month timeframe. In addition, The Local Government Association (LGA) is working with the Ministry of Housing, Communities and Local Government (MHCLG) to make sure there’s a consistent approach across all public sector schemes.
Non-Club Transfers
Transfers calculations to occupational or private pensions schemes could also be affected but we haven’t been able to process requests as quickly as we’d like due to the update of our systems. Regarding the calculation of transfer values, rest assured your benefits will not be negatively impacted as a result of implementing the McCloud Remedy and this will not affect your request.
Retirement and Death Benefits
If you have recently contacted us because you have retired or been bereaved, please be assured we are dealing with your benefit payment. We’re working hard to update our systems to meet the changes put in place by the McCloud Remedy. Once our systems have been updated we will asses whether there is an additional amount due to you, although if this is the case any additional payment is expected to be small. We will write to you if there are any additional amounts due.
In receipt of a Pension
If you are protected and are receiving your pension, we will asses whether there is an additional amount due to you, although if this is the case any additional payment is expected to be small. Once our systems have been updated we will write to you if there are any additional amounts due. We will do this as soon as we can, but it will take some time to review all pensions in payment.
More help and information
Your requests will be processed as soon as possible once our systems have been updated. If you’d like further information in the meantime, please refer to our FAQ document and keep checking this webpage as updates will be posted here.
For more in-depth information relating to the McCloud Remedy and Government recommendations, please visit the LGPS Member website.