Jessica O'ConnorThe Government has announced a revised delivery plan for remediable service statements under the NHS Pension Scheme, acknowledging delays but emphasizing the importance of accuracy and informed decision-making for affected members.
The update was provided by Minister of State for Health (Secondary Care), Karin Smyth, in a statement addressing the ongoing implementation of pension reforms in response to past discrimination.
Public service pension schemes were reformed in 2014 and 2015 to create a more balanced system for public service workers, employers, and taxpayers.
However, transitional protections allowed older workers to remain in legacy schemes, a policy later ruled as discriminatory by the Court of Appeal in 2018 in the landmark McCloud and Sargeant case.
In response, the Government enacted the Public Service Pensions and Judicial Offices Act 2022 to rectify the discrimination.
Affected members must now be given a choice between their legacy or reformed pension benefits for the period in question, with this choice outlined in remediable service statements.
In her address today, Smyth acknowledged that the delivery of these statements is a “complex and challenging programme of work,” with technical issues extending beyond the NHS Pension Scheme itself.
She explained: “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.”
Under the governing legislation, these statements were initially expected to be provided to all affected members by 1st April 2025.
However, the law allows for reasonable extensions based on specific circumstances.
The Government said it is implementing a phased approach to delivering the statements, prioritising those most likely to face financial detriment due to the discrimination.
Smyth acknowledged that many members will receive their statements later than originally anticipated, including some retired members who stand to financially benefit from their pension choices.
She said: “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.”
She noted that the Government remains committed to ensuring that the NHS Business Services Authority adheres to the revised deadlines.
Smyth added: “As part of the revised delivery plan, Government will be holding the NHS Business Services Authority to account against extended deadlines for the delivery of remediable service statements.”
While the exact details of the extended deadlines were not disclosed in the minister’s statement, however, affected NHS Pension Scheme members are encouraged to stay informed through official communications from the scheme administrator.
Graham Crossley, NHS pension expert at Quilter, 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.”
He added: “Today’s 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.”
