GPs affected by pension remedy face financial difficulties due to admin delays

GPs affected by the McCloud remedy are facing financial difficulties due to NHS Business Services Authority (NHSBSA) delays in issuing documents, experts have warned.

The Government committed age discrimination when reforming the NHS pension scheme in 2015, when most public service pension schemes were reformed, and has since sought to remedy this discrimination with new regulations, known as the McCloud remedy.

One element of the remedy is providing affected members with a choice of pension benefits, legacy or reformed, for the period the discrimination had effect.

This means that the NHS Pension Scheme must provide affected members with ‘remediable service statements’ (RSS) which set out how this choice will affect the value of their pension benefits.

Yesterday, health minister Karin Smyth said that the legislation requires that a statement is provided to each affected member ‘on or before 1 April 2025’, but said that there will be delays to the statements for affected NHS Pension Scheme members.

She said that the production of remediable service statements involves a ‘complex and challenging programme of work’ and that ‘technical complexities’ have affected delivery timelines for statements.

She added: ‘The NHS Business Services Authority, as the scheme administrator of the NHS Pension Scheme, is prioritising the delivery of remediable service statements.

‘However, in order to ensure that affected members receive robust statements that enable informed decision-making I have agreed to a revised delivery plan for these statements with the authority, which it is communicating with affected members. 

‘The revised delivery plan prioritises members based on their likelihood of facing financial detriment as a consequence of the discrimination.

‘Government acknowledges that the revised timelines mean many members will receive their statement later than anticipated and that this will have an impact, especially on those retired members who will financially benefit from their choice.’

Graham Crossley, NHS pension expert at financial services provider Quilter, warned that the delays have made financial decisions and planning ‘difficult’ for many members.

He said: ‘We are disappointed in the delays surrounding the delivery of remediable service statements for affected NHS Pension Scheme members.

‘These delays have made financial planning difficult for many individuals. The uncertainty has led to missed opportunities to use full allowances, and these opportunities are lost unless the Government introduces exceptional measures, such as extending carry forward rules to five years instead of three.

‘The update from the Minister of State for Health highlights the complexity and challenges involved in producing these statements.

‘While we understand the technical difficulties, the impact on financial planning cannot be understated.

‘The revised delivery plan prioritises members based on their likelihood of facing financial detriment, but the extended deadlines mean many members will receive their statements later than anticipated.

‘We urge the Government to consider urgent measures, including extending the carry forward rules and providing immediate remediable service statements for those needing transitional tax-free amount certificates.

‘These steps are crucial to ensure that affected members can make informed decisions about their pension benefits without further delays.’

NHSBSA acknowledged that the delays ‘may be disappointing’ to affected members.

A spokesperson told Pulse: ‘As the largest public sector pension scheme, the NHS Pension Scheme has made substantial progress towards implementing the McCloud remedy, to provide robust, accurate statements that allow NHS Pension Scheme members to make informed decisions about their public service pensions remedy (‘McCloud’) benefits. 

‘We know this extension may be disappointing for affected members who will be waiting longer than expected for their statement.

‘We apologise for any inconvenience this may cause. Technical complexities that extend beyond the NHS Pension Scheme, have affected delivery timelines for RSS. We continue to do all we can to issue RSS as quickly as possible to all affected members.’

The Government has recently confirmed that the NHS pension scheme will be changed from next month to clarify how GP pensionable earnings are calculated, as well as two changes being approved for GPs affected by the McCloud remedy.

Last year, accountants warned that up to 50% of pensions statements being sent to NHS pension members affected by the McCloud remedy, including GPs, may contain incorrect information.