McCloud Judgment and Remedy FAQs - Timings and Next Steps

NICS Pension Schemes - McCloud Judgment Remedy FAQs

When will the pension changes be implemented and introduced?

It has been legislated through the Public Service Pensions & Judicial Offices Act 2022 to implement a deferred choice underpin within schemes. All eligible members will be treated equally and will be able to choose to receive pension scheme benefits from either their legacy or reformed scheme for the remedy period. Where necessary, payments will be backdated to 2015.

Schemes made prospective regulations in 2022 to bring into effect the closure of all legacy schemes on 31 March 2022 and move members to the reformed scheme. This ensures that members are placed on an equal footing from that point onwards.

Schemes consulted on retrospective scheme regulations which ensure that the detail necessary for the remedy to be implemented in each affected scheme is in place. All schemes have these regulations in place with effect from 1 October 2023.  

These regulations are used for the various purposes listed throughout the Act, including the process by which a member can make a choice or “election” to receive new scheme benefits; for interest to be paid to a member or scheme on any amounts owed to or by the scheme; to make provision for pension credit members; to make provision for members to receive remediable service statements; to provide for members who have made additional voluntary contributions, and for members who have already benefited from an immediate detriment remedy.

Where the changes legislated for through the Act produce disproportionate tax results that cannot be resolved through powers provided in the PSPJOA 2022, changes, in the form of tax regulations, have been made using provisions contained in the Finance Act that received Royal Assent on 24 February 2022. HMRC consulted on the first set of tax regulations from December 2022 to January 2023; these regulations were subsequently made and laid on 6 February 2023. Further tax regulations were consulted upon, and subsequently made and laid on 17 August 2023 and came into force on 14 September 2023.

Can you provide me with a summary of what is going to happen and when?

1 April 2022

By this date, all active members, in service, are now in the alpha scheme.

1 October 2023

Remedy Legislation is in place.

Any member informing us that they wish to retire after 30 September 2023, will receive an expanded retirement pack which outlines two retirement quotations under their Legacy (Classic, Classic Plus, Premium and Nuvos) and Reformed scheme (alpha). This is known as Deferred Choice Underpin (DCU). At retirement stage you will be required to choose the benefits you wish to receive for your service within the Remedy period (1 April 2015 – 31 March 2022). You can submit this choice to us by post or email via the form provided in your retirement pack.

By 31 August 2024

We will be providing all Annual Benefit Statements (ABS). We are aiming for all active members to receive their Remediable Service Statements (RSS) breakdown in their 2024 Annual Benefits Statement (ABS) by 31 August 2024. No choice is needed at this stage, this RSS is for information only.

Please note if you haven’t done so already, you will need to register for the New - Online Pension Portal  to see your ABS. (Note: if you have previously requested a paper copy this will be sent to you).

By 31 March 2025

Retired members will receive a Remediable Service Statement (RSS), providing them with their Immediate Choice options for both Legacy (Classic, Classic Plus, Premium and Nuvos) and Reformed scheme (alpha). You will receive your choice documents and additional supporting information to help you decide on the benefits you wish to receive for your service within the Remedy period. You have 12 months to make your choice (from the date of letter) and return your choice form by email, however, if you are unable to do this you can submit your choice form by post.

Members who partially retired from 1 April 2015 to 30 September 2023 and took benefits in relation to service in the Remedy period, will also receive their RSS and will have an Immediate Choice to make.

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