LGPS McLoud remedy

dont_use_vistaprint

Hi, I received my annual statement from LGPS and it says my pension is protected by the underpin under the McLeod remedy and it was not possible for us to reflect your protection in this year statement. However we will include any relevant  underpin figures in future years statements.


i’ll be 55 soon and might start to draw this pension not decided yet.

What  is the bottom line with What are they saying? I will be getting more / less money,? I can take my pension earlier/later, I will  have some more options ? it really  doesn’t speak clearly 

Marcon

Seehttps://www.lgpsmember.org/mccloud-remedy/

hyubh

dont_use_vistaprint said:

Hi, I received my annual statement from LGPS and it says my pension is protected by the underpin under the McLeod remedy and it was not possible for us to reflect your protection in this year statement. However we will include any relevant  underpin figures in future years statements.


i’ll be 55 soon and might start to draw this pension not decided yet.

What  is the bottom line with What are they saying?

They are saying (by implication) that they have applied for the (generally available) extension to getting McCloud calcs all done and dusted, i.e. in an ideal world they would have been able to confirm your McCloud calculation result but in practice they can't yet.

I will be getting more / less money,?

Not less, because McCloud for the LGPS concerns an underpin only. However a strong majority of people in scope for a McCloud calculation (a majority that gets increasingly overwhelming the older the subset of members considered is) get no benefit from this underpin because the CARE scheme is so generous, i.e. the scheme changes in 2014 were to their benefit. However it's a massive faff for the administrator to come to that conclusion, since they need to collect and reconcile part time hour, service break and potentially 2008 scheme pensionable pay data from employers and payroll providers, maybe unwind then redo membership aggregations, etc. Some employers have changed payroll providers, let alone payroll systems, multiple times since 2014...

I can take my pension earlier/later, I will  have some more options ?

While that can be the case for other schemes affected by McCloud, neither of those scenarios are applicable for the LGPS.

dont_use_vistaprint

Marcon said:

Seehttps://www.lgpsmember.org/mccloud-remedy/

Thanks - the tool suggests I am in scope although I did leave the pension in April 2015, so probably not much impact

BillyHorner

Because the changes to the LGPS occurred in 2014, coinciding with the several years long public sector pay freeze, the vast majority of members are likely to be better off in the CARE scheme, which was revalued each year by inflation (unlike their salaries at the time). I'd imagine it's only those members who receive(d) a substantial promotion/pay increase just before retirement who might benefit from McCloud protections.

It might have been a different matter, had not the LGPS already moved away from the Rule of 85 in 2008. I could imagine that protection being very beneficial to anyone wanting to start taking their pension before the age of 65. The 2008 changes also included (very generous) protections for older members but, bizarrely, the unions somehow lost the court case on that one.