McCloud Remedy Guide | NHS Pension Choice

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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-guidance/guidance-on-the-public-service-pension-schemes-consultation

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/changes-public-service-pensions/rollback-remedy-period-service

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/changes-public-service-pensions/when-youll-make-your-decision-about-your-nhs-pension-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

Source: https://www.nhsbsa.nhs.uk/changes-public-service-pensions/changes-public-service-pensions-news

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://faq.nhsbsa.nhs.uk/knowledgebase/category/?id=CAT-01289

McCloud, Annual Allowance, and Tax Corrections

Revised PSS figures

A remedy-period change can alter Pension Input Amounts for 2015/16 to 2021/22. Affected members may need revised Pension Savings Statements before finalising tax positions.

Charges can move either way

McCloud can create, reduce, or remove annual allowance charges. Keep earlier Self Assessment submissions and Scheme Pays elections for comparison.

Retirement choice timing

Many members make their final remedy choice when they retire. The better option can depend on retirement age, lump sum needs, survivor benefits, and tax.

Evidence pack

Keep ABS/TRS screenshots, RSS documents, PSS statements, payslips, tax returns, and NHS Pensions correspondence together for your adviser or accountant.

Do not ignore old tax years

If you had annual allowance charges, Scheme Pays elections, or Self Assessment entries during the remedy period, treat McCloud as a tax-review trigger rather than just a pension-benefit choice.

Continue your planning journey

These related guides cover the next questions that usually come up after this topic.

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