Now that the consultations on proposals to remove age discrimination from the LGPS have closed, and with the recent exit payment legislation in England and Wales likely to grab attention and focus, it might be tempting to kick all things McCloud into the long grass. 

To successfully implement McCloud, it’s fundamental to get all the ‘missing’ data necessary to calculate the underpin. Some of this data dates back to 2014 (2015 in Scotland) and is likely to prove challenging for some of your employers to retrieve, collate and send on to you.

If we add employers that no longer exist, have merged or who may have changed payroll systems into the mix, things start to become trickier. As time goes on, the availability and accessibility of the necessary data is not going to get any easier.

The data collection sub-group of the Scheme Advisory Board (SAB) in England and Wales agreed that the data collection should be started as soon as possible. In particular, the SAB guidance  recommends a deadline of 31 March 2021 for the return of the data by employers to the administering authority.

So, what should administering authorities be doing right now in respect of McCloud?

• If you haven’t contacted all your employers, do so, now. If you have, contact them again to remind them – and ask for an update.
• Ensure employers are aware of the SAB documents*:
  1. a.    McCloud data collection template (Excel)
  2. b.    McCloud data collection template notes
  3. c.    McCloud Key bullet points for employers
  4. d.    McCloud Q & As for employer
• Ensure employers are aware of the implications of McCloud and potential consequences of not providing the necessary data.
• Draw up a plan of how you will control, coordinate and monitor the data collection process. Potentially, every one of your employers will need to submit part time/full time hours and service break data in respect of seven (six in Scotland) years.
• Consider how you update your admin system and how this updating will fit in with your year end and annual benefit statement processing.

For more information on how we can help support you in this project, please get in touch