Have you received your remedial pensions savings statement from NHS Pensions? This statement will include recalculations of your pension growth and therefore annual allowance position for each of the seven years of the McCloud ‘remedy period’ which runs from 2015, when the new NHS pension scheme was introduced, to 2022.

To recap, McCloud aims to recompense NHS scheme members deemed to have suffered age discrimination when the 2015 pension scheme was introduced.

What will the revised figures tell me?

Many members will find that their new pension growth figures are lower and therefore their annual allowance position has been reduced. This would lead to a tax rebate, plus interest, on any erroneous tax paid. This however is not issued automatically and rebates will still need to be claimed.

For others, the new figures could establish that tax has been underpaid on pension growth over the seven years. In this scenario, there are different treatments depending on the year of the remedy period – for some years there will be no tax repayments due and overall, we expect most members not to be disadvantaged by McCloud. However, the issue is complex which is why thorough checks are important.

With the vast volume of statements being created and the complex sums involved, you should ensure your figures are being verified by experts used to checking NHS calculations.

Are you confused by McCloud or concerned about your statements? Call our adviser team on 020 7636 7006 to arrange a chat.