Prepare ahead of the McCloud rectification date

Going forward, pension records from Autumn 2024 should reflect this. 

Find more details on the ruling

Those impacted by the McCloud rectification date must meet all of the following conditions:

• Had a pension service during the remedy period (1 April 2015 to 31 March 2022)
• That pensionable service was in a legacy section of the Scheme, or in the 2015 Scheme (but would have been in the legacy section if not for the discrimination)
• Were in a pensionable service under a legacy section of the Scheme on or before 31 March 2012 (and have not since had a disqualifying gap before starting pensionable service during the remedy period)
• Where there is more than one period of pensionable service during the remedy period, there must not be a disqualifying gap between periods for the subsequent periods to count as remediable.

A disqualifying gap is defined as more than five years where it is between another public sector scheme and the NHS Pension Scheme, or five years or move between NHS Pension Schemes.

The Annual Allowance impact

If you have reported an Annual Allowance tax charge on your tax returns for the seven-year period between 2015 and 2022, these will need restating through an HMRC portal, and any tax payments adjusted.

We anticipate that doctors will receive Remedial Pension Savings Statements from October onwards and they will have until the 31 January to report it. If you do receive this and require support, please do not hesitate to contact us and we can assess your position and advise you through our McCloud Annual Allowance Rectification Service.

Did you opt out of the scheme at any point?

Many doctors chose to opt out of the 2015 scheme over that period. This process will give you the opportunity to reconsider that decision however you need to choose carefully and consider the cost of opting back in, the impact on your pension and the tax considerations.

In Scotland that process has now commenced and those who wish to consider opting back in for any period need to apply by 30 September 2024 to have their case considered although no final decision needs to made at that date. Late applications though will not be accepted so Scottish doctors must act quickly if they wish to keep the opt in option open.

What happens if you do nothing?

If you have been impacted by McCloud and Annual Allowance Tax Charges or wish to consider opting back in, you will have limited time to do this. Failure to act may result in your tax position being incorrect and you could lose opportunities to reduce tax charges previously applied or may result in reduced pension benefits.

Will my costs be covered?

We await final rules for the schemes in Scotland and England, but we expect costs to be covered for resubmitting tax data. Find out more. 

What to do now?

If you would like to speak with one of our specialist NHS pensions advisers regarding your Annual Allowance Tax Charges, opting back in to the NHS pension scheme or personal financial planning in generation please do not hesitate to get in touch.

Contact us today

McCloud rectification date webinar

Join us on Tuesday 15 October for a virtual webinar where our NHS Pensions specialists will provide more details on how you can prepare ahead of and following the rectification date. If you want to register for this event or to receive a copy of the recording, complete the form. 

Register today