Member Knowledge Article

Should I just opt out?

If you are thinking of opting out of the Civil Service pension arrangements, remember that if you do, you will miss out on a range of valuable benefits for you and your family.

Your pension is an important part of your pay and reward package. As well as your pension contribution, your employer also pays a pension contribution on your behalf.

Who is going to pay for all of this?

The Government has made it clear that all costs associated with the ‘2015 Remedy (McCloud)’ are ‘member costs’ and will be paid by the scheme.

How were interest rates decided?

The interest rates were determined by the Government’s three objectives, to firstly reflect the position members would have otherwise been in without the discrimination having occurred, secondly to recognise the circumstances of the award and thirdly to not unduly burden the taxpayer.

Further details on our rationale can be found in the letter exchanges between HMT and the Government Actuary.

Some companies are offering to help members with their McCloud choice for a fee, will these fees be reimbursed through the compensation scheme?

Members do not need to go through a third party to claim McCloud remedy benefits. For the majority of members the choice will be straightforward and guidance will be provided by schemes to help in this decision, this guidance is free. Using a paid service will not mean that a member is given their choice any sooner or affect the options a member has.

Only a very small number of affected members are expected to require support from an independent financial advisor or accountant regarding their McCloud remedy. Where the small number of members with particularly complex circumstances seek advice, members will be able to submit evidence and if the scheme agrees that this advice was required, the member will be able to claim back the costs of this advice.

Does 2015 Remedy affect death benefit nominations?

For classic members moved to alpha on 1 April 2022: they are now able to make a nomination in favour of more than one individual so they can update/ make a new nomination if they would like to.  For further information head to the Death Benefit Nomination page.

Post rollback: Any members who have been rolled back into classic and had made a nomination for death benefit whilst in alpha (for more than one individual), this is valid for the Remedy period service and no action is required to update previous nominations.  For further information head to the Death Benefit Nomination page.

I took Partial Retirement before 31/03/2015, continued working and have subsequently taken my Final Retirement benefits after 01/04/2015. How is my Immediate Choice (IC) RSS impacted?

Your IC RSS will only show you options in relation to the benefits you have built up after your original Partial Retirement award.

The Remedy (McCloud) legislative change affects benefits within the period 01/04/2015 to 31/03/2022. As your Partial Retirement was put into payment before 01/04/2015 they are unaffected by this change and your IC RSS will only show you options relating to benefits you’ve built up after this date.

Please be assured that your original Partial Retirement benefits will be unaffected by your option and will remain in payment. We will however carry forward your choice relating to your later Final After Partial award, and make the necessary adjustments as detailed by your choice.

I took Partial Retirement before 31/03/2015, continued working and have subsequently taken my Final Retirement benefits after 01/04/2015. How is my Immediate Choice (IC) RSS impacted?

Your IC RSS will only show you options in relation to the benefits you have built up after your original Partial Retirement award.

The 2015 Remedy (McCloud) legislative change affects benefits within the period 01/04/2015 to 31/03/2022.  As your Partial Retirement was put into payment before 01/04/2015 it is unaffected by this change and your IC RSS will only show you options relating to benefits you’ve built up after this date.

Please be assured that your original Partial Retirement benefits will be unaffected by your option and will remain in payment.

I'm partially retired - am I an Immediate Choice member or a Deferred Choice Underpin (DCU) member?

This depends on when you took your benefits and whether those benefits were based on your remediable service. Remediable service is service you have between 1 April 2015 and 31 March 2022 – the Remedy period.

An Immediate Choice member is someone who was affected by Remedy and was already receiving pension benefits or had a pension in payment before 1 October 2023. These members were given a choice between their current pension benefits (based on their original scheme) and an alternative based on the benefits they would have received had they been in the reformed alpha scheme during the remedy period (1 April 2015, to 31 March 2022).

The Immediate Choice exercise is seperate to any retirement. The immediate choice will be given to those members who could have made the choice at the time of retirement but weren't yet given the remedy options.