The McCloud remedy is the resolution that HM Treasury are applying to fix the age discrimination issues within the public sector pension schemes in respect of the way in which the new sections were introduced 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.
They are calling this the “NHS Cost Claim Back Scheme” and more information can be found Here
Highlights include:
- A potential compensation payment of up to £500 (inclusive of any 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.
- A potential compensation payment of up to £1000 (inclusive of any VAT) for support with the revision of the Annual Allowance position for those individuals who are having their service ‘rolled back’ into the 1995/08 scheme. This roll back will change 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 should be provided before 6 October 2024.
- There will be a deadline set for these issues to be managed, which is 12 months from when you have received the Remedial Service Statement.
- A Remedial Service Statement is a statement which will confirm your revised position once the remedy is implemented. These will be issued, in all likelihood, during 2024.
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 can be found on our website: