Understanding the McCloud Remedy and NHS Pension Scheme Opt-Outs

Between 2015 and 2022, many NHS professionals made career-defining decisions about their pensions amid the rollout of the 2015 NHS Pension Scheme.

These choices—whether to opt out, cancel Added Years contracts, or alter contributions—were made under the belief that the new scheme was less financially beneficial.

Now, due to the Public Service Pension Remedy, more colloquially known as the McCloud Remedy, you may be able to revisit and revise those decisions

Dental & Medical Financial Services have been assisting doctors with their financial planning for over 30 years.

This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.

This article was approved by Best Practice IFA Group Limited on 22 May 2025
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What Is the McCloud Remedy?

The McCloud Remedy is a response to a landmark court ruling which found that the 2015 pension reforms unlawfully discriminated against younger members. In short, while older members were permitted to remain in the more generous 1995/2008 legacy schemes, younger colleagues were transitioned to the 2015 career average revalued earnings (CARE) scheme.

To correct this, the government is now implementing a two-part fix:

• Firstly, in 2022, all members were transitioned into the 2015 Scheme, ensuring equal treatment moving forward.
• Secondly, the discrimination will be “remedied.” For the remedy period (1 April 2015 – 31 March 2022), affected members will have a choice of whether they receive 1995/2008 Scheme or 2015 Scheme benefits for their service in the remedy period or return any service that affected members have in the 2015 Scheme during the remedy period back into the 1995/2008 Scheme.

Understanding Contingent Decisions

If you made pension-related decisions during the remedy period based on concerns about the new scheme, these are now considered “contingent decisions”.
This includes:
• Opting out of the NHS Pension Scheme due to higher contribution rates or perceived poorer benefits.
• Cancelling Added Years contracts or Additional Pension (AP) arrangements.
• Making financial moves such as purchasing an Early Retirement Reduction Buy-Out (ERRBO) or Additional Voluntary Contributions (AVCs) based on incorrect assumptions.

If you fall into any of these categories, the good news is that you may be able to reverse these actions and reclaim lost benefits.

Your Options Under the Remedy

1. BUY BACK MISSED SERVICE
If you opted out between April 2015 and March 2022, you may now be able to reinstate the service you missed. This would require paying the contributions you would have made—either in a lump sum or through instalments.
2. REINSTATE CANCELLED CONTRACTS
Cancelled Added Years or Additional Pension arrangements can potentially be revived, restoring lost value and retirement security.
3. ERRBO AND AVC ADJUSTMENTS
If you paid ERRBO contributions, compensation or the opportunity to redirect these into legacy scheme benefits may be available. Similarly, if your AVCs were misaligned with your actual scheme eligibility, a correction may be possible.
4. CHOICE OF SCHEME BENEFITS AT RETIREMENT
At the point of retirement, you’ll be offered a one-time decision: receive benefits for the 2015–2022 period from the 2015 Scheme or your relevant legacy scheme (1995/2008), whichever is more advantageous.
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What Happens Now?

The NHS Pensions Agency or your pension administrator will contact you directly if you are affected. Expect a detailed letter explaining your situation, options, and the steps you need to take. It’s crucial to review all correspondence carefully and act promptly.
If you believe you are eligible but have not yet been contacted, monitor updates on the NHS Pensions website or get in touch with the agency directly. Crucially, independent financial advice is strongly recommended since navigating pension reinstatements and revised contributions can be complex.
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Seek Specialist Financial Advice

Doctors and dentists who altered or opted out of NHS pensions between 2015 and 2022 now have a valuable second chance to review their decisions. The McCloud Remedy aims to level the playing field, but it requires timely action and careful review of the options available.
Stay informed, act early, and seek professional advice. Even though you might need help navigating remedial pension savings statements, with the right guidance, the pension savings process can be simplified and your financial future secured.

For tailored advice for your unique situation, contact the experts at Dental & Medical Financial Services today.