NHS pension remedy would offer choice of benefits for nurses

NHS staff including nurses may soon be able to choose from two pension benefit options as the McCloud remedy aims to address discrimination against younger staff

A new retirement process giving nurses and other healthcare staff a choice of pension benefits is expected to be implemented this year following reports of age discrimination in NHS pensions over a seven-year period.
Nurses were among healthcare professionals who were found to have been discriminated against between 1 April 2015 and 31 March 2022. The government made changes to public sector pension schemes in 2015, but the reforms did not apply to members who were within ten years of their normal pension age on 31 March 2012.
They were allowed to remain in the legacy 1995-2008 scheme with ‘transitional protection’. The Court of Appeal later found this to be discriminatory against younger members.
The McCloud remedy is a set of changes that address this age discrimination in two parts. The first part took place in 2022, when all active pension scheme members became part of the 2015 scheme, allowing for equal treatment.
Nurses' age could play a key role in determining which pension benefits they choose
The second part aims to resolve the discrimination over the seven years, known as the ‘remedy’ period, and involves giving all affected members a choice of pension benefits when they retire. Members will be asked if they would like to receive 1995-2008 scheme pension benefits or 2015 scheme benefits for their membership between 1 April 2015 and 31 March 2022.
Nurses who have already retired or will retire before the new process is in place will be asked to make their choice retrospectively. They will be sent a remediable service statement which will set out the benefits they are entitled to, though it is unclear what these will be or when in 2025 it will happen.
NHS pensions expert Graham Crossley, from wealth management firm Quilter, told Nursing Standard that nurses’ age could play a key role in determining which benefits they choose.
‘If they are over the age of 60 and coming up to retirement, we are finding that it can be better for them to have the benefits in the 2015 scheme. Whereas for younger members, the benefits in the 1995-2008 section seem to be more favourable,’ he said.

One pension option will be based on your income going forward and the other on the lump sum available to you
‘However, the NHS pension scheme is weird and wonderful, and there are all sorts of different nuances, so there will be many people who do it the other way around.
‘The key thing is to try and understand the two options. One will be based on your income going forward and the other is based on the lump sum that you have available straight away. So it all depends on individuals’ circumstances as to which option is right for them.’
Mr Crossley also encouraged nurses to look into the NHS Business Services Authority’s (NHSBSA) cost claim back scheme, where they can claim up to £1,000 plus VAT for financial losses they might have incurred because of the remedy.
Disappointment over delay to option for members who have already retired
The option for members who have already retired to make their choice was originally expected to be available from 1 October 2024, according to the RCN, but has been delayed.
RCN national pensions officer Chris Musgrave said the delay was deeply disappointing. ‘It prolongs the uncertainty for many nurses owed stability and security in their retirement.’
An NHSBSA spokesperson said it apologised for the delay, adding that ‘significant complexities’ were involved in implementing the McCloud remedy.
‘We recognise that members are waiting longer than planned. We’re working at pace to confirm a timescale and we will contact scheme members directly as soon as possible to provide an update.
‘We’re working with employers, unions and employee representative groups to minimise the impact of these delays and support affected scheme members as much as possible.’
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