Annual Benefit Statements (ABS) and Review of Benefits Paid Since 1 April 2014

In 2014, changes were introduced to the Local Government Pension Scheme (LGPS) to make it more sustainable and affordable. As part of these changes, protections were provided to older members. However, in December 2018, the Court of Appeal ruled that these protections unfairly discriminated against younger members. This is known as the McCloud ruling.

To fix this, new rules were introduced in September 2023 to extend protections to younger members who were treated unfairly. These protections ensure that eligible members get the better of either the career average scheme or the old final salary scheme benefits. Applying this fix from 1 April 2014 to 31 March 2022 is complex and many members are affected.

Following a decision made by the Pensions Committee on 25 July 2025, the deadline for completing all work relating to the McCloud remedy was extended to 31 August 2026. This means that all the work needed to send accurate Annual Benefit Statements (ABSs) at 31 March 2026 to active, deferred and pension credit members has to be finalised by that date. Also, all work to rectify benefits already in payment and other pension rights must also be completed by 31 August 2026.

What does this mean for me?

The work to update data for active and deferred Scheme members is complete, so if you’re an active or deferred Scheme member, your ABS at 31 March 2026 will be reflective of the McCloud remedy.

If you are an active member, your ABS will show whether you are currently considered eligible for protection under the McCloud remedy and any additional estimated amount due is included in the current value of benefits on page 1 of the statement.

If you are a deferred member, your ABS will show whether you are currently eligible for protection under the McCloud remedy and any additional amount due is included in both the original and current value of benefits on page 1 of the statement.

If you are a pension credit member or you have a pension debit applied to your benefits following a Pension Sharing Order, your ABS at 31 March 2026 will not reflect any changes to your entitlement because of the McCloud remedy, as divorce settlement calculations still require review (further information below). Please be assured that as soon as the Fund have reviewed your calculation, an updated statement will be issued to you.

If you leave the LGPS before retiring, transfer your benefits, or you or your beneficiaries become entitled to benefits now, these calculations will include any additional amount due to the McCloud remedy.

Rectification of remedy period calculations back to 1 April 2014

The Fund has unfortunately not yet been able to review all the past calculations potentially affected by the McCloud remedy to see if the benefits or pension rights are impacted. Calculations will be reviewed as soon as possible, and you will be informed if there is any additional amount due to you. Affected calculations back to 1 April 2014 include:

• Retirements 
• Survivor pensions and death grants 
• Transfers to other LGPS funds 
• Transfers to other pension schemes 
• Pension sharing orders, including pension debits and credits.

Please be assured that you will hear from the Fund if you are affected and any arrears and interest due to you will be paid.

The Fund is engaging with The Pensions Regulator about the delay in re-visiting these calculations.

For more information about the McCloud remedy and whether you may be affected, visit: lgpsmember.org/mccloud-remedy.