NHS Pensioners & the McCloud Remedy

21.07.26 01:41 PM - By Paul Gorman

The latest dates for Remedial Service Statements

NHS Pensions has confirmed two separate timelines based on the different circumstances of retired members.

These timelines reflect how pension benefits are currently being treated under the Remedy:

Timeline 1: Members Receiving 2015 Scheme Benefits

Expected receipt of RSS statement: End of December 2027

This applies to members who:

● Are currently receiving 2015 Scheme benefits (for all or part of the remedy period), OR

● Retired before 1 October 2023 and built up pension in the 2015 Scheme during the remedy period

This group includes most members whose benefits are likely to change due to the remedy. Their RSS will show them whether switching to 1995/2008 scheme benefits would be advantageous.

Timeline 2: Members Already Receiving 1995/2008 Scheme Benefits

Expected receipt of RSS statement: End of June 2030

This applies to members who:

● Had their pension returned to the 1995/2008 Scheme on 1 October 2023 (for these members, discrimination has already been addressed), OR

● Moved to the 2015 Scheme on 1 April 2022 or retired before doing so

Members in this category will often see little or no change to their current benefits, though individual outcomes vary. They will still receive an RSS with the option to switch to 2015 Scheme benefits if they choose.

The Uncertainty Continues

McCloud has created significant problems for divorcing couples and those involved in pensions on divorce work and the uncertainty continues for NHS Retired Members who are affected by the Remedy. Until an affected member receives their RSS, the true value of their pension is unknown.

If the parties are considering pension sharing as a means of settlement, they should note that where a CEV statement for a retired member has been issued before the RSS has been issued and an election made, the CEV could alter once an election has been made (particularly if the alternative option is chosen), which would then impact on the pension credit awarded to the ex-spouse.

We understand that NHS Pensions will not hold up pension sharing implementation, but if the member makes a different remedy choice post-divorce than that assumed at the time the CEV is prepared for pension sharing purposes, they will retrospectively adjust the benefits for the pension credit member and the original scheme member once the remedy choice has been made.

The issue here is that it could mean that the percentage share in the Annex is calculated based on terms different to what the member may choose shortly after the divorce has been finalised, the eventual outcome for each party may differ to what was agreed.

A practical step to consider in any financial settlement involving a retired NHS member who hasn't received their RSS is to flag this as early as possible in financial settlement discussions and to consider what if any flexibility can practically be built into negotiations and settlements.

Paul Gorman

Director