Issue details
PROPOSED McCLOUD JUDGMENT REMEDY AND LGPS CONSULTATION
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.
Decision type: Key
Reason Key: Expenditure impact > £500,000;
Decision status: For Determination
Wards affected: (All Wards);
Decision due: 2 Nov 2020 by Pensions Committee
Lead member: Councillor Pat Cleary, Co-Leader of the Green Group patcleary@wirral.gov.uk
Lead director: Director of Merseyside Pension Fund
Department: Delivery
Contact: Yvonne Murphy Email: yvonnemurphy@wirral.gov.uk.
Agenda items
- 02/11/2020 - Pensions Committee PROPOSED McCLOUD JUDGMENT REMEDY AND LGPS CONSULTATION 02/11/2020
Documents
- PROPOSED McCLOUD JUDGMENT REMEDY AND LGPS CONSULTATION