Management Consulting
Aon
Full Credential Description
Aon faced significant challenges related to the changes outlined in the Ministry of Housing, Communities & Local Governments (MHCLG) consultation on the proposed amendments to the Local Government Pension Scheme (LGPS) in England and Wales, particularly in response to the McCloud case. The primary issue was the requirement for a major data collection exercise to calculate the final salary underpin for certain members, which necessitated recording 2008 scheme pay for the next 40 years. This complexity was compounded by the need for administering authorities to critically analyze draft regulations and identify necessary changes, as the solution could not be solely addressed through updates to administration software. To address these challenges, Aon emphasized the importance of early engagement with Local Pensions Boards and Pensions Committees to ensure effective governance of the McCloud implementation programs. They recommended that administering authorities develop comprehensive plans to manage the recalculation of benefits for various scenarios, including retirements, deferred leavers, and deaths, which represented a substantial administrative task. Aons tailored solution involved not only adjusting ongoing administrative systems and processes but also enhancing communication strategies to facilitate the collection of historical data from employers dating back to 2014. The quantifiable results of Aons approach included a structured framework for managing the complexities of the McCloud changes, which helped ensure compliance with the new regulations while minimizing disruption to pension administration. By proactively engaging with stakeholders and planning for the extensive data requirements, Aon positioned its clients to navigate the challenges effectively, thereby safeguarding the integrity of pension benefits for affected members.