What is the McCloud judgement and how does it affect you?

In 2015 the government reformed most public service pension schemes, including the NHS Pension Scheme. Those NHS Pension Scheme members who were affected, younger members, moved from the Legacy 1995 Section or 2008 Section to the new Reformed 2015 Scheme on or after 1^st April 2015.

In December 2018, the Court of Appeal found this to be (age) discriminatory against younger members, this has become known as the McCloud judgment. This discrimination is being removed to ensure equal treatment for all members.

It affects the 7 year period from the 1^st April 2015 to the 31^st March 2022 in total and is known as the Remedy Period.

What we know already is summarised below.

• The changes apply to NHS workers who joined the NHS Pension Scheme on or before 31^st March 2012 and were still a member on or after 1^st April 2015
• All members have now been ‘deemed’ to be ‘put back’ into their old ‘LEGACY’ Scheme (the 1995 or 2008 Section(s)) for this time period.

At the point of taking the pension the member will have the choice:

• Do I want these 7 years in my Legacy (1995/2008) pension?
• Do I want them in the Reformed (2015) Scheme?
• It will be a one-time only choice
• You cannot change your mind
• Anyone who retired or will retire on or after 1^st April 2015, and already in receipt of their NHS pension, and affected by the McCloud judgement, will have their pension reviewed and a backdated assessment and changes made.
  • We do not expect this to happen before 2025
• We expect that anyone affected by the ‘McCloud judgement’ who transitioned to the 2015 Scheme and unsuccessfully applied for the NHS in service ill-health pension will have that decision to reject the application reviewed

On 1 April 2022 every active member of the NHS Pension Scheme will join the 2015 Scheme regardless of their age. NHS pension benefits they have accrued up to that date are protected.

There is still a lot to be finalised and published, we will keep you informed.