Doctors have just weeks for big pension decision
McCloud latest: Choice exercise launched for pension members
By Edie Bourne
Many doctors have been receiving letters from the NHS Pension Agency asking if they would like to change the decision they made about their pension when the 2015 scheme was first introduced.
This is being called ‘Choice 2 revocation’ and their decision must be made within a few weeks.
The original ‘Choice’ exercise gave all eligible members of the NHS Pension Scheme the option to move from the 1995 section into the 2008 section when it was introduced.
When the 2015 section was launched, ‘Choice 2’ gave members who had remained in the 1995 section another opportunity to move.
As part of the McCloud remedy being implemented, members have now been given the option of revisiting their ‘Choice 2’ decision.
This is because they may have moved believing the new sections offered more retirement flexibility – but now McCloud has given them further options anyway.
George Uglow, chartered financial planner at Cavendish Medical, told Independent Practitioner Today: ‘If you decided to move your 1995 section benefits to the 2008 section, you can now change your mind and move the benefits back.
‘Doctors have started to receive letters asking them to decide what they would like to do, but they only have until 20 May 2024 to notify the NHS Pensions Agency.’
This exercise has been launched as part of the McCloud remedy which aims to recompense NHS scheme members deemed to have suffered age discrimination when the 2015 pension scheme was introduced.
Those members now have the option to receive their original benefits from the 1995 or 2008 scheme for the seven years of the ‘remedy period’ – which runs from 2015 when the new pension scheme began to 2022.
Mr Uglow added: ‘If impacted by this choice, you need to consider whether you would have acted differently if you had been allowed to remain in the 1995 section.
‘For many, this chance to change their decision will be advantageous but that is not always the case.
‘Everyone’s circumstances are different so there are always things to consider – and not much time to deliberate the choice – so please ensure you are seeking the support of your financial adviser.’
Choice 2 revocation is not open to members who already moved their service as part of the original Choice exercise.