More than 300,000 retired NHS staff still don’t know if they are getting the right size of pension after a landmark discrimination ruling.
Public sector workers saw huge changes to their pension schemes in 2015 which broadly made their pensions less generous.
Some staff had the pensions they were entitled to revalued as a result, and a court case – known as the McCloud judgement – found that there had been age discrimination based on how this was done.
A fix called the McCloud remedy was announced back in 2021 to address this, but many retired workers are still waiting for these recalculations, according to a Freedom of Information request submitted by financial advice firm Wesleyan to the NHS Business Services Authority.
It shows that of 303,225 so-called immediate choice members – those who have already retired and are receiving pensions – 300,062 are still waiting for their pensions to be recalculated.
It means hundreds of thousands do not know if they’re getting the pension they should be and although the situation will be remedied retrospectively, it could cause a headache if changes are made and tax bills need to be recalculated.
It could also mean some retirees are living on lower pension incomes than they are entitled to.
Some of the retirees will receive the option of two different pensions under the remedy, but the FOI request shows 296,616 immediate choice members are awaiting remedial service statements (RSS).
These documents that show them how much they would receive under each pension scheme option, allowing them to make an informed choice of which to opt for.
The FOI request shows that in the most extreme case, one staff member had been waiting 703 days for the information.
Madeleine Dowling, technical team lead at Wesleyan, said the delays were creating “financial uncertainty”.
She said: “For those who have already retired, there’s the unsettling reality of not knowing whether they’re receiving the correct pension amount.
“For those still planning retirement, the delays are forcing them to make decisions without accurate information, at a time when workforce pressures are already intense and the NHS can’t afford to lose experienced doctors to preventable administrative delays.”
Downling said it was “unacceptable” that staff were retiring without the correct information about their pensions.
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A spokesperson for the NHS Business Services Authority said: “Delivering the McCloud remedy is an unprecedented challenge shared across all public sector pension schemes, and every scheme has reported risks to timescales.
“With almost four million members, the NHS Pension Scheme faces a particular level of complexity.
“The McCloud remedy is complex and requires activity and calculations for which there is no precedent. Throughout this process, we have been open and transparent with members and with the Department of Health and Social Care (DHSC).
“We are working closely with DHSC to conduct a thorough review and agree an updated delivery plan.”
Anyone with existing queries is encouraged to ask their employer or NHS Pensions. They can do this via their online form, email nhsbsa.pensionsmember@nhsbsa.nhs.uk or phone 0300 330 1346.
How NHS pensions work
NHS pensions are run on a defined benefit system, and are more lucrative than most private sector pensions. Employees build up an entitlement to an annual income in retirement, regardless of how long they live.
Most private sector pension schemes run on a defined contribution system, where workers build up a pot and manage this during their retirement.
For every year they contribute to the pension scheme, NHS staff accrue 1/54 of their earnings, every year in retirement.
The money is also protected from inflation.
In order to fund the scheme, employees pay between 5.1 and 13.5 per cent of their earnings towards their pension benefits membership, and their employer pays 22.5 per cent.
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