SPPA Letter McCloud Remedy

MarkCarnage

One of my wife's friends got her Remedial Statement through…..she was a teacher and retired early several years ago.
I really can't believe they are asking her to make a choice here (between her original FS and CARE for the remedy period) as the latter is unambiguously worse and would result in her having to repay money both from pension and lump sum! She was pretty confused and wondered if she was missing something….
I do wonder why on earth they bother writing to people in her situation and in particular ask them to make a choice! However the SPPA track record suggests that delay, waste of time and money are par for the course.
As a Trustee of a couple of big Schemes where we do have a number of 'remediations' we would screen these out at the testing phase and not waste everyone's time and scheme money contacting people needlessly.
More public sector waste…..

molerat

Simply because the court judgement and subsequent changes states they have to give members the choice, to not offer the choice would be contrary to that judgement. In a better off / worse off situation it is not up to the scheme to make that call, it was the members that wanted that choice.

MarkCarnage

https://forums.moneysavingexpert.com/discussion/comment/82040646#Comment_82040646

I can just see the next step when someone wants to be compensated for their own stupidity. The law is truly an !!!!!! here.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82040656#Comment_82040656

How do you think we got to the stage that packets of nuts have warnings that they may contain nuts.

Lowtrawler

https://forums.moneysavingexpert.com/discussion/comment/82040656#Comment_82040656

Not at all, the request from members to the Court was to be given the choice and they won their case. My wife is still waiting for her remedial choice statement. She claimed her 1995 pension a couple of years ago and has continued to work, paying into the 2015 scheme. I expect her best option will be to repay some of the pension she has been receiving (and part of the tax free lump sum), reverting into the 2015 scheme. In reality, there will be arguments toward her taking either option.

Flugelhorn

I took my pension in 2019, I was unable to take a lump sum from a private pension as I had breached the LTA - now I can't get a cert to let me get the lump sum because I haven't got the McCloud thing - there is a scheduled time of 18 months to go yet

MarkCarnage

https://forums.moneysavingexpert.com/discussion/comment/82040670#Comment_82040670

My point was that surely there should be some sense check here. Please tell me how it can make any sense to elect for an option where the pension and lump sum under the 'remedy' are lower and the pensioner has to pay back money and receive a lower pension going forward with the same PI rate being applied?

MarkCarnage

https://forums.moneysavingexpert.com/discussion/comment/82040693#Comment_82040693

The time taken by SPPA seems inordinate. A case of be careful what you wish for….and they waste time by sending out pointless correspondence where it is abundantly clear from all the numbers that the 'remedy' is not in fact a 'remedy' at all.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82040696#Comment_82040696

The outcome of McCloud was courts to offer the remedy choice for the period 2015 - 2022 and that's what the various Public Sector scheme adminstrators are doing, some at an even slower pace than SPPA. Far easier to send out the choice to all affected than make a decision on a members behalf, which they are not empowered to do.

MarkCarnage

Sounds like the cost of the admin will > the benefits in many cases….and taking years clearly….

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82040724#Comment_82040724

It all goes back to the Govt of the day implementing what turned out to be unlawful discriminatory legislation.

The cost of fixing the mess will be astronomical.