The Pensions Regulator (TPR) has published new guidance for public service pension schemes on producing annual benefit statements over the next two years to reflect the McCloud remedy.

The government recently confirmed that it would be moving ahead with the 'final steps' in the McCloud remedy, with the new scheme remediable service regulations statutory instrument to be laid in parliament in early September.

Over the next two years, public service pension scheme managers will need to produce annual benefit statements and remedial service statements for affected members affected by the McCloud remedy, in line with the requirement for public service schemes to provide timely annual benefit statements by 31 August each year.

In light of the fact that pension schemes may need to send these statements at similar times, TPR stressed the need for "accurate, clear and accessible" communications to avoid members receiving confusing or misleading information.

TPR also confirmed that it expects schemes to provide annual benefit statements to scheme members within the statutory timeframe wherever possible, especially those members whose benefits are unaffected by the McCloud remedy.

Failure to provide scheme members with accurate, complete, or timely annual benefit statements, will therefore be considered a material breach of the law.

However, the regulator acknowledged that meeting all annual benefit statement disclosure requirements due to McCloud remedy issues may be challenging.

Because of this, TPR stressed that it will take a risk-based, practical approach when reviewing, assessing and responding to annual benefit statement breaches of the law during 2023 to 2025.

As part of this, the regulator may also ask schemes for extra information, to gain insight into their plans to rectify the reported breach for the affected delivery year.

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