If you’ve been part of the NHS Pension Scheme for a while, you might be hearing more about something called the McCloud Remedy – so here’s a simple explanation of what it is, what it means for your pension and what you might need to do next.

What is the McCloud Remedy?

The McCloud Remedy is the Government’s fix to a legal ruling that found parts of the 2015 public service pension reforms unfairly treated younger members. These reforms moved many people into the 2015 NHS Pension Scheme while letting older members stay in legacy schemes (like the 1995 or 2008 sections). The court decided that wasn’t fair and the remedy corrects that.

In practice:

• The remedy reassesses your pension benefits and tax figures for the period from 1 April 2015 to 31 March 2022 known as the remedy period.
• Once your pension figures are updated, you’ll usually receive a Remediable Pension Savings Statement (RPSS) showing revised values and your pension growth for those years.

Who is likely to be affected?

You may be affected if:

• You were an NHS pension member before 31 March 2012 and you continued in service after 1 April 2015.
• You’ve retired, are deferred, or returned to NHS service within five years after leaving, as long as you meet those service conditions.

If you joined the scheme after April 2012, you’re unlikely to be affected.

Why you might get a Remediable Pension Savings Statement (RPSS)

Once the Government has recalculated your pension positions:

• They send an RPSS showing your pension growth as if the discrimination hadn’t occurred.
• This revised pension growth figure feeds into your Pension Annual Allowance tax calculations.

That matters because your Pension Annual Allowance position for years within the remedy period may now be different – and that can trigger one of two outcomes:

1. You might be due a tax refund
If you overpaid tax because your pension growth was previously overstated under the old rules.
2. You might need to disclose to HMRC
If the revised figures mean you exceeded your Pension Annual Allowance in a tax year, you’ll usually need to tell HMRC within the timeframe set out on your RPSS.

What you need to do (practical steps)

Here’s the action plan for most NHS members affected by McCloud:

1) Watch for your RPSS
It’s usually posted by NHS Pensions and contains your updated figures.
2) Check the deadlines
Once your RPSS arrives, you normally have 3 months (90 days) to respond or report anything to HMRC.
3) Decide if you need support
Some members find it easier to work with a specialist accountant or tax adviser to:

• Reassess Pension Annual Allowance tax positions,
• Prepare disclosures, and
• Ensure everything is submitted correctly by the deadline.

Helpful to know: cost recovery

The government offers a reimbursement scheme for professional fees related to McCloud work, for example:

• Up to £1,000 (including VAT) for accountancy work.
• Up to £500 (including VAT) for financial advice.

This means you may be able to claim back the costs of any adviser you use in assessing your McCloud position.

In summary

The McCloud Remedy is all about fairness, correcting a historic pension issue so NHS Pension Scheme members are not disadvantaged because of age discrimination in 2015 reforms.

That can affect both your pension value and your annual allowance tax position, so:

• Keep an eye out for your RPSS,
• Act within the deadline, and
• Seek specialist help where you need it.

If you’d like help understanding your own McCloud figures or navigating HMRC reporting, let us know, we’d be happy to guide you.