Depending on when you retire, you’ll be asked to make this decision either when you claim your NHS pension benefits or later. Read more about when you'll make your decision.
In the meantime, if you had service in the 2015 Scheme during the remedy period, this service will have been rolled back into the 1995/2008 Scheme. Read more about rollback.
What the NHS Cost Claim-back scheme can be used for
The NHS Cost Claim-back scheme allows eligible members to apply to claim back certain direct financial losses or tax losses linked to the McCloud remedy.
To be eligible for NHS Cost Claim-back, you need to be directly affected by the remedy. You can also apply if you are a personal representative, or if you’re applying for a loss that a remedy member incurred if you are their designated person. You can see if you’re eligible by checking if you’re affected.
More details on how to use the Cost Claim-back scheme will be explained in the scheme rules once these are available.
It's unlikely you’ll need professional services or advice for the remedy
The remedy will be straightforward for most members, and it’s likely you won’t need help from a professional advisor. However, a small number of members may find their remedy is more complex, as it could affect things such as their annual allowance tax position or their lifetime allowance.
Some may have a lifetime allowance charge to pay if the pension benefits they’re already getting go up as a result of their choice.
If your tax position is affected
If you’re an active or deferred member and you’re affected by rollback and annual allowance, you will be sent a remediable pension savings statement (RPSS). This will show how much your pension grew in the 1995/2008 Scheme for each of the remedy tax years plus any carry forward tax years that apply.
If you’re already receiving your pension benefits, once you’ve made your retrospective choice about which benefits you would like to receive for your affected service during the remedy period, we’ll send you a remediable pension savings statement if your choice means you’ll need one.
If your tax position is affected, you may need to use an Independent Financial Advisor (IFA) or accountant to help with your allowances. You can apply to claim back costs you would not otherwise have needed to pay if it weren’t for the remedy through the NHS Cost Claim-back scheme. There may be limits on how much you can apply for. These will be explained in the scheme rules once these are available.
Making changes to your tax payments using the HMRC Digital Service
To correct these tax years or claim back overpayments, you will need to use the HMRC Digital Service.
You will need to have your remediable pension savings statement and other information at hand to use the HMRC Digital Service.
We’ll be sending the majority of active or deferred remedy members their remediable pension savings statement from April 2024. Find out more about when remediable pension savings statements will be issued.
There’s no need to ask us for a remediable pension savings statement in advance. We will make sure that you have the information you need in good time.
If you need professional services when you get your RPSS
You can apply to claim back the costs of professional services you need to use, due to the discrimination or application of the remedy.
For example, these could be costs where you employed an IFA or accountant for advice about the move to the 2015 Scheme, or if you decide you need advice about the effect of rollback on your tax position once you’ve received your remediable pension savings statement.
To apply to claim back direct financial losses, use the NHS Cost Claim-back form which we expect will be available on this website from 1 December 2023 along with the full scheme rules.
You will be able to use more than one form to claim back separate direct financial losses.
Costs not covered by this scheme
There are some costs you can’t claim back through this scheme, such as costs you have previously received a payment for through a court order, or those you have already submitted a claim for. If you owed money to the NHS Pension Scheme and what you owed has been reduced by an equivalent amount to the sum you may be seeking to claim, you also won’t be able to claim this back through the scheme.
There are also some circumstances where we know members will have been affected by the McCloud remedy and we’ll be writing to anyone in these situations directly, so they shouldn’t need professional advice. These circumstances are:
- Ill Health Retirement benefits
- Early Retirement Reduction Buy-outs (ERRBO) contributions paid during the remedy period
- practitioners who paid part-year contributions to the 2015 Scheme during the remedy period
- if you chose to move your pension benefits into the 2008 Section as part of the 2015 Choice 2 exercise
- if you purchased additional pension during the remedy period
- if you were subject to a pension sharing order after March 2015
If you’re affected by any of these situations, when we contact you we’ll explain how the remedy applies to your pension benefits and any action you need to take.
There will also be processes for remedy members whose finances were affected by other decisions, such as:
- if their tax position was worse due to the transitional protections that were in place
- if they decided not to purchase Additional Pension due to the 2015 changes
- they decided to opt out of the NHS Pension Scheme because they didn’t want to move to the 2015 Scheme
These members will be able to apply to reinstate opted-out remedy period service back into the 1995/2008 Scheme from 1 December 2023.
We’ll share more information on these processes once this is available.