(Updated 2025)
The McCloud Remedy is the resolution that the government are applying to fix the age discrimination issues from the introduction of the Career Average Revalued Earnings (CARE) public sector pension schemes in 2015.
There are many retrospective amendments and updates which can affect the pensionable service and calculations for the period 01 April 2015 – 31 March 2022.
Pension schemes are communicating with their members as and when required and each scheme has information about the remedy on their own individual websites.
NHS Pensions have this week confirmed that there will be a compensation framework and option for those individuals who may have or will incur a direct financial loss as a result of the McCloud Remedy, with (some) professional fees reimbursed through the “NHS Cost Claim Back Scheme” and more information can be found here.
Highlights include:
- Reimbursement of up to £500 (inclusive of VAT) for support with individuals making their McCloud decision at the time they are taking their benefits. This decision is about how the benefits are calculated for the period from 2015 -2022.
- Reimbursement of up to £500 (inclusive of VAT) for support with individuals who have already claimed some or all pension for the Remedy Period in making their Immediate Choice McCloud Remedy decision which will backdate any changes to their retirement date. Individuals will receive a Remedial Service Statement (RSS) which outlines the two alternatives – 2015 – 2022 in the legacy scheme (1995/2008) or new scheme (2015). These were expected to be issues by 31 March 2025 but will likely take at least 2 more years. There is a deadline set for these issues to be managed, which is 12 months from when you have received the Remedial Service Statement.
- Reimbursement of up to £1,000 (inclusive of VAT) for support with the Remedial Pension Savings Statement (RPSS – revision of the Annual Allowance position for those individuals who are having their service ‘rolled back’ into the 1995/2008 scheme). This roll back in October 2023 changed the past Annual Allowance position and could alter any pensions tax payments made or due in the period from 2015/16/-2022/23. These statements were originally expected to be provided before 6 October 2024 but are still being issued with any HMRC reporting to be completed within 3 months.
The details around some of these processes and how compensation can be claimed, and in what specific scenarios, remains outstanding and so further updates are expected.
Information about how we can support with any of these areas are at: Services relating to the McCloud Remedy