Kent Pension Fund must review thousands of pension records for the McCloud remedy. This process will take many months to complete.
As part of the process the Fund:
- identifies all those eligible for the remedy
- obtains and verifies the required data
- undertakes a comparison check between final salary and Career Average Revalued Earnings (CARE) benefits
- performs a calculation.
We cannot give a deadline as we are still in the identification and data gathering phases of the process. We do not have final numbers about how many calculations we must undertake.
Most members will not have an increase in their benefits. This is because the pension in the CARE scheme is usually higher than the pension that would have built up in the final salary scheme.
You do not need to do anything. We undertake the process for all scheme members.
Pensioner and survivor members with pension in payment
If an extra payment is due because of the McCloud remedy, we pay it with interest. We pay it as soon as the process is complete.
HMRC provide guidance when we make an extra payment because of the McCloud remedy. Income tax must be deducted from the payment in line with your tax code at the point that the payment is made. If you pay more tax because of the arrears, you may reclaim the overpaid tax from HMRC.
Current and deferred members with pension not in payment
If benefits in the McCloud remedy period are higher in the final salary scheme, we notify you of the estimated amount that applies. We notify you when the process is complete.
We make final checks to assess the actual amount due. We do this when you take your pension or you transfer out your pension from the scheme.