Do members need to submit a legal claim to receive any pension changes to address the discrimination identified by the courts?
No, members do not need to submit a legal claim to receive any pension changes addressing the discrimination.
The Government has committed to applying any changes across the main public service pension schemes and so both claimants and non-claimants who are eligible members will receive the pension changes.
Why do I have to make a choice between Principal Civil Service Pension Scheme (PCSPS - classic, classic plus, premium and nuvos) (option A) or alpha (option B) scheme benefits for the remedy period (1 April 2015 to 31 March 2022)?
The differences between PCSPS and alpha mean that the set of benefits that is best for you depends on your personal circumstances and preferences. Therefore, the Government is providing you with a choice, to ensure you can choose which scheme benefits are better for you.
Why am I only making a choice of my pension benefits for the period 1 April 2015 to 31 March 2022?
1 April 2015 is the date when alpha was introduced, and 31 March 2022 was the point at which the Principal Civil Service Pension Scheme (PCSPS - classic, classic plus, premium and nuvos) was closed to future accrual.
What is a deferred choice underpin and why has the Government chosen this approach?
To address the discrimination identified by the courts, eligible members who were moved to the reformed pension scheme (alpha) in 2015 (or later if they had tapered protection) have been moved back into their Legacy pension scheme for the period during which the discrimination occurred, between 1 April 2015 and 31 March 2022.
When members, or members who were originally protected, near retirement, they will receive a choice of which pension scheme benefits they would prefer to take for the period. This is called a ‘deferred choice’.
The choice will be between the member’s Legacy (classic, classic plus, premium and nuvos) pension scheme benefits and their reformed pension scheme benefits.
By deferring the choice until shortly before retirement, it allows individuals to make their choice of which pension scheme benefits are better for them, based on facts and known circumstances as opposed to assumptions on their future career, health, retirement and other factors. The level of both pension scheme benefits will be known at retirement.
For those pensioners who are already receiving benefits relating to the period of discrimination between 2015 and 2022 there will be an immediate choice as soon as practicable once the necessary provisions are in place.
What are the differences between the Principal Civil Service Pension Scheme (PCSPS) and the reformed scheme (alpha)?
In the case of Civil Service Pension Scheme members, the PCSPS schemes are classic, classic plus, premium and nuvos and the reformed scheme is alpha.
The main differences between the PCSPS and reformed schemes are transition into career average pension schemes from final salary schemes and an increase in normal pension age.
The change to career average means members’ pensions are now calculated on their average salary throughout their career as opposed to their final salary.
The reformed scheme was designed to make public service pensions more affordable and sustainable for the future, while still ensuring public servants received appropriate pension provision at retirement.
The reforms created a fairer system. The move from (mostly) final salary to career average pension means that members accrue pension at a typically higher annual rate based on their average salary. Although some members are better off in their PCSPS scheme, the reformed scheme is more beneficial for others, particularly many lower paid members.
How does this change affect me financially?
You will be given a choice for how you would like your benefits to be calculated for the Remedy period.
We provide free Pension Power training sessions which you can book onto, the sessions include information about alpha if you wish to learn more about how your pension savings will grow under your new scheme.
Who should I contact for more information?
The Civil Service Pension website is where all of the current and up to date information is housed on 2015 Remedy (McCloud) along with these helpful FAQs. We are working through the impacts to those members who are affected. As soon as we know how you are impacted, we will tell you what it means for you and what action needs to be taken.
When will those who are suffering immediate detriment see their benefits amended?
By 31 March 2025 retired members will receive a Remediable Service Statement (RSS) in the post, providing them with their Immediate Choice options for both Legacy (classic, classic plus, premium and nuvos) and Reformed scheme alpha. You will receive a key choice illustration document 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 the choice (from the date of letter) and you will be asked to submit your choice to us online however, if you are unable to do this you can submit your choice by post, via the form provided in your immediate choice pack.
Why can’t immediate detriment cases be processed before October?
The Government accepts that members affected by immediate detriment have an entitlement to be treated as a member of their legacy scheme for the remedy period if they wish.
However, giving effect to this entitlement before legislation is implemented would create complex issues, particularly where there are interactions with the tax system. Instead processing cases from 1 October when scheme regulations take effect will ensure a consistent approach and mitigate the risk of adverse tax impacts for members.
If I retired before October 2023, what pension benefits will I receive?
Where members retire before the deferred choice is implemented in their pension scheme, they will initially receive benefits from their current scheme.
They will then be given a choice of benefits for the remedy period as quickly as possible after that and any increased entitlement will be backdated.
Is all of the legislation to remedy McCloud is now in place?
No. There are still detailed changes that need to be made to scheme regulations. These will be made using the powers in the Public Service Pensions & Judicial Offices Act 2022 (PSP&JOA 2022) and need to be in force by 1 October 2023 at the latest.
There are also some situations where changes to pension rights due to the McCloud remedy produce disproportionate tax results that cannot be resolved through powers provided in the PSP&JOA 2022. Therefore, the Government will also be making changes to tax legislation to ensure that the remedy can be implemented smoothly. 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 will be consulted upon, and finalised, ahead of implementation of the remedy.
