McCloud Remedy Explained for Younger Pensioners
Younger members of the Local Government Pension Scheme (LGPS) are set to benefit from the McCloud remedy, a measure designed to rectify age discrimination within the pension scheme. The remedy provides an underpin
for those who would have been financially better off under the old final salary scheme.
During a Brent Pension Board meeting on Tuesday, 21 July 2026, John Smith, Pensions Manager for Brent Council, elaborated on the McCloud remedy. He explained that the core idea is to ensure fairness by offering younger members protection they would have received under the previous final salary scheme if it proves more advantageous. Smith stated, And so the McLeod underpin is basically giving younger members who weren't protected protection up. And the idea is that if they would have been better in the old final salary scheme, which only relatively few people are, then they would have what they call an underpin.
Chris Spatz, Head of Client Services for Local Pensions Partnership Administration (LPPA), confirmed that the McCloud remedy project remains on track. LPPA is working towards including the underpin data in the Annual Benefit Statements by the August 2026 deadline. The fund took the discretion to extend the timeline to the 31st of August of 26 to include the McLeod underpin in the statements,
Spatz noted. John Smith added, And the LPPA seem to be managing it quite well. They're expecting to be able to provide annual benefit statements with McLeod underpins.
The specific details of what information the 'underpin data' will contain on these statements are still being finalised.
The McCloud remedy stems from a legal challenge that highlighted age discrimination in the transition from final salary to career average pension schemes. When public sector schemes moved from final salary to career average benefits, protections were built in for older members. The McCloud remedy extends an underpin
to younger members who would have been better off under the old final salary scheme, effectively extending these protections to ensure equality.
Retrospective cases are also being addressed, with work underway to remedy historic cases for individuals who may have passed away or been receiving pensions for some time.
While the implementation of the remedy is complex and resource-intensive, involving retrospective work, LPPA assured the board that these projects are being managed effectively. The aim is to ensure that all eligible members receive the correct benefits, upholding the principles of fairness and equality within the LGPS. Further details on the pension board meeting can be found in the Public reports pack and the Agenda frontsheet.
