McCloud Remedy — What GPs Need to Know and Do Now

McCloud Remedy — What GPs Need to Know and Do Now

The McCloud remedy corrects the age discrimination that occurred when the 2015 NHS Pension Scheme was introduced. Many GPs were moved back into their legacy 1995 or 2008 schemes for the period from 2015–2022.

To read our initial article on this, which explains the background in more detail with who is and who is not affected please click here.

What should you do now

• Check your RPSS (Remedy Pension Savings Statement):
  This shows your revised pension growth for 2015–2022. Many GPs still haven’t received it — you’re not alone. Dates are constantly being pushed back as NHS Pensions massively underestimated the work required. Please note that those already in receipt of their pension may receive their paperwork last.

If you haven’t got it:

• Contact NHS Pensions to check the status.

• Ask for a service extract to check for missing employment periods.

• If you spot gaps, follow up with PCSE to update your records.

When you receive your RPSS:

• Send it straight to your accountant or pensions advisor.

• You may need to amend tax returns or claim refunds.

Note to GP Locums: If you were subject to the annualization rules regarding your tier rating, this only applied to the 2015 scheme and so any years rolling back into your legacy scheme will not be subject to annualization. If your tier rate would have been lower, you need to make a claim to the PCSE via their online claim form.

• You should deal with this within three months of the date of the letter but to our knowledge there are no consequences for not complying. We are aware that some of our clients merely filed there RPSS letter back in the autumn. So, don’t worry but take action now.

Consider a buy-back:

• If you opted out or deferred, you may be able to buy back that time. See Contingent Decisions below.

• You can request a quote using the ‘Application to Buy Back Opted Out Service’ form on the NHS Pensions website.

• You may not need to buy back the entire period — sometimes buying just part can deliver most of the benefit.

• We are aware that when buying back years, you are not being asked to pay the Employer contributions, so doing this may be doubly beneficial.

Get expert help:

• The rules and forms can be complex.

• Advice can help you maximise the benefit and avoid mistakes.

• Most of the professional fees will be recoverable through the NHS cost claim back scheme.

Key Impact — Contingent Decisions

Many GPs opted out or deferred their pension during this “remedy period” either because they thought the 2015 Scheme was less favourable or they didn’t want to pay high tax charges. Now, those GPs may have the right to buy back that lost membership — this is called making a contingent decision.

Why this matters:

• If you were out of the scheme for more than 5 years, you could have lost the extra annual uplift (CPI + 1.5%) that applies to active members.
• Buying back just one month could break a 5-year deferral and reinstate this uplift — potentially adding £10,000 or more per year to your pension.
• If this scenario is relevant to you, then do obtain some professional advice.

Final Reminder

The McCloud remedy could make a real difference to your pension, so you need to check your position and act now.

Obtain your statements, correct any missing data and talk to a trusted NHS pensions expert if you think you might benefit from a buy-back.

Don’t ignore correspondence from NHS Pensions, send it to your RBP accountant as soon as it arrives.