1.1 On 16 July, the Ministry of Housing, Communities and Local Government (MHCLG) released the much-anticipated consultation on the McCloud remedy for the LGPS in England and Wales, a 12-week consultation covering extensive detail on how the remedy will be applied.

1.2 The Fund response to the consultation was shared with the Chairs of Pension Committee and the Local Pension Board, for comment and approval prior to submission on 8 October.

The submitted response is attached as Appendix A and focuses on the operational aspects and communicative challenges in implementing the proposed remedy.

1.3 Separately, the Government has announced that the Treasury will restart the ‘Employer Cost Cap’ assessment for all public sector schemes and critically that the McCloud remedy is to be included in the assessment of the impact on member benefits.

1.4 A contribution rate assessment for the McCloud remedy was calculated at the 2019 valuation for Fund employers and the calculations were generally done in line with the proposed underpin in the consultation. Some employers made a provision in their contribution rates and we would not expect to revisit this allowance until the next valuation. For other employers, the Funding Strategy Statement allows us to revisit this where appropriate once the remedy is finalised.