Sutton Council's Pension Fund has missed the statutory deadline for implementing the McCloud remedy, according to a Pension Administration Projects Update presented at the Pension Committee meeting on 9 December 2025. The report pack stated that a revised project plan was established with a new target completion date of 30 June 2026, after the Fund missed the statutory implementation deadline.
The committee met to discuss pension administration, governance, investments and budget monitoring.
The McCloud remedy addresses age discrimination found in public sector pension schemes related to pension reforms in 2015. The aim is to ensure affected members are placed in the pension scheme they would have been in had the discrimination not occurred.
According to the Pension Administration Projects Update, communications explaining the delay and revised timeline were sent to all 3,544 in-scope members in November 2025. In the interim, manual processes remain in place to ensure any member retiring or leaving the scheme has their benefits calculated correctly.
According to the Governance and Risk Update, the failure of software provider Civica to provide software compliant with LGPS Regulations remains a red-rated risk. The report stated that Civica has delivered initial software patches to address the McCloud Remedy; however, outstanding issues with the software remain, and further patches are still expected. As noted in the Pension Administration Projects Update, outstanding issues with the software remain, and further patches are still expected. The core risk is that until a fully compliant and tested solution is delivered, the Fund lacks a guaranteed operational system compliant with LGPS regulations, which could lead to the incorrect payment of member benefits. Mitigations remain in place, with officers addressing issues directly with Civica's client manager and working closely with the national Civica Client User Group to apply collective pressure for a timely resolution.
