McCloud Resources & Tools
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).
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)
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).
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.
Implementation Timeline
Key dates for the McCloud remedy:
•October 2023: Retrospective choice exercises began
•April 2024: Changes to contribution structures
•October 2024: Prospective choice exercises began
•October 2025: Original completion deadline — missed; all original and extended deadlines were not met
•August 2025 onwards: Annual benefit statements now include estimated McCloud comparison figures
•Early 2026: Independent review (commissioned by NHS Pension Board) expected to conclude, after which new statutory deadlines will be set
•December 2026: Hard deadline for the largest cohort (~308,000 members with benefits in payment)
Current position (March 2026):
•NHS Pensions is working through a replanning exercise
•New delivery timelines are expected once the independent review report is published
•Members can see estimated comparison figures on their annual benefit statements
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
Required Actions
1
Check eligibility
Confirm if you're affected by the McCloud remedy
2
Keep informed
Monitor communications from NHS Pensions about implementation
3
Understand your schemes
Learn about the differences between legacy and 2015 scheme benefits
4
Wait for your choice exercise
Be patient - you'll be contacted when it's time to make your decision