McCloud Remedy Guide | NHS Pension Choice

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1995/2008 Scheme Guide

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Deferred Choice - No Rush to Decide

You don't need to make your McCloud choice now. The decision will be made when your benefits become payable, allowing you to compare actual values rather than estimates. NHS Pensions will contact you when it's time to choose.

What is the McCloud Remedy?

The McCloud remedy addresses age discrimination that occurred when public service pension schemes were reformed in 2015. When the 2015 NHS Pension Scheme was introduced, older members were allowed to stay in their legacy schemes (1995/2008), while younger members had to transfer to the new scheme.

The Court of Appeal ruled this age discrimination unlawful in December 2018. The remedy will give eligible members a choice of pension benefits for the period between 1 April 2015 and 31 March 2022 (the remedy period).

Source: https://www.gov.uk/government/publications/public-service-pension-schemes-changes-to-the-transitional-arrangements-to-the-2015-schemes

Who is Eligible?

You are eligible for the McCloud remedy if you:

•Were in service on or before 31 March 2012

•Remained in service on or after 1 April 2015

•Have qualifying service after 31 March 2015

This applies whether you are:

•Currently an active member

•Have retired

•Have left the scheme

•Are claiming ill health benefits

•Are a member who has died (benefits will be revised for eligible beneficiaries)

Source: https://www.gov.uk/government/consultations/public-service-pension-schemes-consultation-changes-to-the-transitional-arrangements-to-the-2015-schemes

The Remedy Period

The remedy period runs from 1 April 2015 to 31 March 2022. During this period:

•All members were moved to the 2015 Scheme

•Eligible members will have a choice between:

- Legacy scheme benefits (1995/2008)

- 2015 Scheme benefits

This choice will be made when benefits become payable (retirement or earlier if benefits crystallize before then).

Source: https://www.nhsbsa.nhs.uk/member-hub/mccloud/remedy-period

Deferred Choice Underpin (DCU)

The government has confirmed that the remedy will be delivered through a Deferred Choice Underpin (DCU). This means:

•You don't need to make your choice now

•The choice will be made when your benefits are paid

•You'll have all the information about both options

•You can compare the actual value of both sets of benefits

•The choice is final once made

This approach ensures you can make a fully informed decision based on your actual circumstances rather than predicted benefits.

Source: https://www.nhsbsa.nhs.uk/member-hub/mccloud/deferred-choice-underpin

Implementation Timeline

Key dates for the McCloud remedy:

•October 2023: Retrospective choice exercises begin

•April 2024: Changes to contribution structures

•October 2024: Prospective choice exercises begin

•October 2025: Expected completion of all choice exercises

During this period:

•NHS Pensions will contact eligible members

•Information will be provided about both benefit options

•Support will be available to help make informed decisions

Source: https://questions-statements.parliament.uk/written-statements/detail/2023-03-30/hcws694

Impact on Benefits

How the remedy affects different aspects:

Financial Impact:

•Pension amount changes

•Contribution adjustments

•Tax implications

•Arrears payments

•Interest calculations

Administrative Changes:

•Records updates

•Benefit statements

•Payment adjustments

•Service calculations

•Contribution records

Personal Planning:

•Retirement decisions

•Financial planning

•Tax considerations

•Family benefits

•Career decisions

Source: https://www.nhsbsa.nhs.uk/member-hub/mccloud/mccloud-faqs

Required Actions

Check eligibility

Confirm if you're affected by the McCloud remedy

Keep informed

Monitor communications from NHS Pensions about implementation

Understand your schemes

Learn about the differences between legacy and 2015 scheme benefits

Wait for your choice exercise

Be patient - you'll be contacted when it's time to make your decision

NHS McCloud Remedy Guide