The McCloud remedy addresses age discrimination identified by the courts in relation to public service pension reforms. For some Local Government Pension Scheme (LGPS) members, this may result in an increase to pension benefits built up between 1 April 2014 and 31 March 2022, known as the remedy period.
If you are eligible for the McCloud remedy, we will compare the pension you built up under the LGPS career average scheme with the pension you would have built up under the previous final salary scheme rules for the remedy period. If the final salary calculation provides a higher benefit, you will receive the higher amount.
The McCloud remedy may affect you if:
- You were paying into the LGPS or another public service pension scheme* before 1 April 2012, and
- You also paid into the LGPS at some point between 1 April 2014 and 31 March 2022, or transferred in benefits from another public service pension scheme* where membership falls between those dates, and
- You have previously been a member of a public service pension scheme* and have not had a break in membership of more than 5 years at any time.
*A Public Service Pension Scheme is one of the following pension schemes: Armed Forces Pension Scheme, Civil Service Pension Scheme, Firefighters Pension Scheme, Judicial Pension Scheme, NHS Pension Scheme, Police Pension Scheme, Teachers' Pension Scheme, and Local Government Pension Scheme.
If you have relevant membership of a non LGPS Public Service Pension Scheme that Kent Pension Fund are not aware of, then please complete the Confirmation of Previous Public Sector Pension Scheme Membership Form (opens in a new window) (DOCX, 46.3 KB). Alternatively, if you would like a copy sent to you in the post, please contact us
Please follow the instructions on the form and once fully completed, send the form to your previous pension scheme administrator. If you have more than one previous public service pension, please ask each provider to complete a form. You do not need to complete the form if your previous public service pension is with the Local Government Pension Scheme (LGPS) as we will contact your previous LGPS fund directly.
What data Is used in McCloud calculations?
To complete a McCloud remedy calculation accurately, the Kent Pension Fund requires detailed pensionable membership covering the remedy period.
The information used may include:
- Your pensionable pay for each relevant year
- Periods of LGPS membership
- Hours worked
- Unpaid leave and authorised absence information
- Additional pension purchases or transfers, where applicable.
This information allows us to recreate the pension benefits that would have been earned under the previous final salary scheme and compare them with the benefits already calculated under the career average scheme.
Where does the data come from?
All of the information used in McCloud calculations detailed above is supplied directly by your current or former employer(s) apart from transfer information.
Where historic data is incomplete or unavailable, the Fund may work with employers to obtain missing information or use approved methods to estimate certain records in line with national LGPS guidance.
What should I do If I think the data is wrong?
It is important that the information used in your pension calculation is correct.
If, after receiving your McCloud remedy details, you believe any of the information used is incorrect you should contact your current or former employer(s) as soon as possible.
If your employer agrees the data is incorrect they should submit revised data to the Fund.
If you are unable to resolve the issue with your employer and wish to dispute the data used please complete the McCloud Remedy Employer Data Dispute Form (opens in a new window) (DOCX, 28.8 KB)
I am eligible for McCloud protection but why is my McCloud Guarantee Amount zero?
A McCloud guarantee amount can be £0.00 where a member's benefits under the CARE scheme are equal to or better than the benefits that would have been provided under the final salary scheme for the remedy period.
Example of a full-time member with zero McCloud Guarantee Amount
Example of a part-time member with zero McCloud Guarantee Amount
How does the McCloud Remedy work if I am in the 50/50 section of the LGPS?
The McCloud Remedy still applies but because there were no 50/50 arrangements under the Final Salary arrangement, the CARE pension used in the comparison is calculated as if you had been in the main section of the scheme.
How does this affect pensioner members?
Kent Pension Fund is reviewing the records of pensioner members who may be eligible for the McCloud remedy. Where applicable, we will:
- Recalculate pension benefits using the revised McCloud protection rules.
- Identify whether an increase to pension benefits is due.
- Backdate any pension increase to the original retirement date, where required.
- Pay any pension arrears owed, together with any applicable interest in line with scheme regulations.
Do I need to do anything?
You do not need to take any action. Kent Pension Fund will assess eligible cases and contact members directly if their pension benefits need to be adjusted.
Will everyone receive an increase?
No. Although many members may qualify for McCloud protection, an increase is only payable if the benefits calculated under the McCloud protection are higher than the pension already being paid. Some members will see no change to their benefits following the review.
Timescales
The McCloud remedy affects a large number of members and requires detailed benefit calculations and data verification. Kent Pension Fund is working through affected cases as quickly as possible and will contact members whose benefits require adjustment.
Further Information
You do not need to take any action unless you believe the information held about your pensionable membership history is inaccurate. If you are eligible for McCloud protection, Kent Pension Fund will calculate any increase due and will inform you of the outcome.
For more information about the McCloud remedy and whether you may be affected, visit the national LGPS member website