The Sutton Pension Fund is facing potential delays in issuing Annual Benefit Statements (ABS) to its members due to ongoing issues with its software provider, Civica. The delays primarily stem from the implementation of the McCloud Remedy,
a complex exercise to rectify age discrimination within the Local Government Pension Scheme (LGPS) reforms.
Tom Taylor, Head of Pensions Administration, informed the Pension Board on Thursday, July 16, 2026, that while the fund has received all necessary data from employers for the McCloud Remedy, the loading of this data onto the administration system is only at 89.17%. This is significantly behind schedule, with the original deadline for issuing McCloud-compliant ABSs by July 31st now at risk. The projected new deadline for issuing these statements is working towards the 31st of August.
Taylor explained that Civica has encountered multiple software release issues. What was initially believed to be one release required for the McCloud Remedy has now become three. The technical reason for these issues is that each Civica client's got a different configuration. So, you know, it may have worked perfectly for the one that tested all of this. But for all the other clients, they tried to roll it out. So, it's very piecemeal, and it doesn't work as expected.
Testing these releases within the tight timeframe before the August 31st ABS deadline is proving ambitious. There is a real possibility that we could be reporting a breach of the law to the regulator for this year's statements as well,
Taylor stated. The potential consequences of such a report include a fine of up to £50,000,
though it is noted that to date, no pension fund has been fined from a breach of McLeod.
The fund has received one consultancy day in recognition of the delays
from Civica.
However, Taylor assured the board that all members would still receive an annual statement this year, and that the project is still on track.
Any understatements due to the McCloud Remedy would be rectified later. This rectification will be communicated through comms in the statement
and a covering letter
with the statements, with further information added to the website. The timeline for this rectification is anticipated to be in October sort of time,
when affected members will be contacted with updated statements.
The Sutton Pension Fund is mitigating the consequences of potential regulatory breaches by being open, honest and upfront
and providing a full project plan and a summary as to what we've done to kind of meet the requirements, what we are doing to correct ourselves effectively.
They are also working with other Civica LGPS clients to apply collective pressure on Civica to deliver the software.
The Pension Board noted that this is not an isolated issue, with many LGPS clients facing similar challenges with Civica's software. The situation has led to a red
risk rating for administration in the fund's governance and risk register, specifically concerning the software provider's ability to deliver compliant software. To address this, the fund is holding regular meetings with Civica, agreeing on delivery schedules, and formalising escalation methods. In future system procurements, the fund will be seeking clearer clauses on compliance and redress for non-compliance.
Further details on the fund's performance and investments can be found in the Public reports pack for the Pension Board meeting on July 16, 2026. The agenda for this meeting is available here.
