Pensions - Articles - Response to the McCloud remedy in the LGPS consultation


Government has issued its response to the consultation ‘McCloud remedy in the LGPS – supplementary issues and scheme regulations’ which closed on 30 June 2023.

  This consultation covered proposals around aggregation, club transfers, flexible retirement, divorce, injury allowances, compensation, interest and excess teacher service. The final regulations have also been published and come into force on 1 October 2023.
 
 Virginia Burke, Senior Consultant at Aon: “In the main, the response confirms that the proposals in the consultation will be implemented. The only amendment to the original proposals is in the area of interest, where there is a small change to the way interest will be applied to additional Pension Commencement Lump Sums.”
 
 “The response confirms that where it is required, updated Government Actuary’s Department guidance will be issued “as soon as possible”, as will an updated Public Sector Transfer Club memorandum. A national working group has been set up to consider the areas where guidance is needed, and the response sets out some of the areas where guidance will be statutory and where it will be non-statutory. Statutory guidance will be issued where it is necessary to have a consistent approach and this is not already achieved through regulations. This will include the prioritisation of McCloud cases and how to identify which members qualify for McCloud protection where there could be earlier service in another LGPS fund or another public service pension scheme. Other areas will have non-statutory guidance, such as administrative guidance and complex case examples, and how to deal with flexible retirement cases. Where a need for guidance is identified, there will be a technical consultation “with selected stakeholders representing those affected”.”
 
 “There are still some areas where additional regulations are needed (particularly for dealing with excess teacher service) and a further consultation on these will follow in due course with selected stakeholders.”
 
 “The consultation response and regulations should give administering authorities comfort to press ahead with their McCloud planning ready for the ‘go-live’ date on 1 October. However, it is imperative that guidance is published as soon as possible to give funds the full picture of what is needed.”
  

 Response to McCloud remedy in the LGPS consultation

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