Who will be paying for the McCloud Remedy? It could be you…

Most NHS pension scheme members are aware of the McCloud Remedy and the government’s decision to remove age discrimination to ensure equal treatment for all NHS pension scheme members. We now ask who will be paying for this ‘remedy?’ Early signs indicate it could be you!

Who will be paying for the McCloud remedy?As explained in earlier articles, in December 2018, the Court of Appeal found NHS pension reform protections, which meant members closer to retirement were not moved into the 2015 section of the NHSPS. This action was judged discriminatory against younger scheme members and has become known as the McCloud Judgment. 

What does the McCloud remedy mean for you?

Any continuous service you have between 01 April 2015 and 31 March 2022 (for members with service on or before March 2012) will be placed into your legacy scheme by 01 October 2023. More information will be provided by NHS pensions on how this change will happen, and what to do if this impacts your circumstances in due course. Members will be given some choices just before retirement, but essentially the legacy schemes (1995 and 2008 sections) will play a larger part in members’ pension provision than before. This all sounds pretty complicated, and with complications comes implementation costs.

So, who will pay for the McCloud Remedy?

Under current plans, the Treasury are seeking that NHS pension scheme members will foot the costs of the ‘remedy’, despite this being its own mistake. The estimated cost of this is £17bn

The McCloud Remedy affects not only the NHS pension scheme but also the Firefighters pension scheme. The Fire Brigades Union (FBU) and the British Medical Association (BMA) have worked together and both have been granted legal permission to challenge the government over plans to pass McCloud remedy costs on to their members.

Last year, the FBU and the BMA threatened the government with legal action in a bid to shield their members from these costs.

As you can see the fallout from the 2018 ruling continues and this legal challenge could serve to further slow the process down, and cause additional difficulty and worry to members looking to retire soon. The BMA are pushing hard to speed the process of clarification up, but as we all know the NHSPS is not a speedy creature.

We continue to monitor the process carefully and will publish developments as they happen, so keep checking back with us or speak to your Legal and Medical Adviser.

Will you be affected by the McCloud Remedy? Let us know by leaving a comment below

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