The Public Service Pensions and Judicial Offices Act 2022 (PSPJOA 22) came into effect on 1 October 2023 and provides the framework for the implementation of the remedy which will give officers the same pension choices for the Remedy Period (1 April 2015 to 31 March 2022).

The remedy applies to pension scheme members who were in pensionable public service both on or before 31 March 2012 and on or after 1 April 2015, including those with a gap in service of no longer than five years. Officers who joined from 1 April 2012 are not in scope for the remedy.

• Rollback

Officers who are not retiring before 1 April 2025 will be rolled back into their legacy scheme (1987 and 2006 pensions) at some point before 1 April 2025. At this point a Remediable Service Statement (RSS) will be provided. This is planned for August 2024.  This includes active and deferred members of the pension.

The most important part of the RSS will be the difference for the remedy period in pension between the legacy and reformed schemes (2015). It will also deal with the contribution position, interest and tax relief. 2006 Legacy pensioners will be owed contributions and interest minus tax relief. 1987 legacy pensioners will owe contributions, less tax relief plus interest.

Monies owed can be paid in full within 12 weeks of the RSS being issued. There will be an opportunity to pay the full amount after each and every RSS. If officers do not pay the amounts owed before retirement, then it will be settled at that point.

Monies owing to 2006 officers can be taken once the RSS has been issued. If at retirement the officer decides to take the reformed scheme benefits and has taken the monies owing, they will owe a shortfall in contributions.

• Interest on contribution adjustments

Interest owed is compound interest from the date of entry into the 2015 scheme to the date of settlement. The NS&I direct saver rate is the applicable rate.

Interest owing is paid at 8% and is simple interest.  If an officer does not take the monies owing the interest rate reverts to the NS&I direct saver rate on a compound basis 29 days after the issue of the RSS.

The NS&I direct saver rate is currently 4%. The historical changes in rates can be found here:  Historical interest rates | NS&I (nsandi.com)

Officers will then have a deferred choice upon eventual retirement to change their choice of pension for the Remedy Period to the reformed scheme or to remain on the legacy scheme. Annual Benefit Statements will show both positions each year and there will be a final statement before retirement so that officers can make an informed deferred choice at retirement.

• Current retirements

Officers planning retirement prior to April 2025 and the roll back are finding it difficult to get remedy forecasts for their potential retirement date or dates. PFEW are working with the NPCC and pension administrators to address this. Officers who are facing this issue should speak with their local Federation Branch Board.  Formal complaints should also be made, and the Internal Dispute Resolution Procedure (IDRP) instigated.  Escalation to Force senior leaders should also be considered.

Officers have also had issues with receiving their commutation and pensions on time, the RSS options have also been provided too close to retirement dates. This is not acceptable and PFEW have been addressing this at all levels. The situation is improving but there are still officers affected by this. PFEW are suggesting the same route as above for officers to complain.  They should also collate any out-of-pocket expenses due to late payment and claim them from their Force.

Pension Administrators should be providing remedy forecasts. NPCC have also developed a McCloud calculator - Calculator - policepensioninfo.co.uk

• Compensation

Compensation is available for direct financial losses due to the remedy and Section 4 tax losses which is basically tax relief or overpaid tax that cannot be addressed as it is out of time. There is also the facility for professional advice in certain circumstances where the services of an accountant/tax adviser/Independent Financial Adviser or solicitor (divorce) is required. The guidance was published in mid-May 2024 and is here:

NPCC-Member-Remedy-factsheet-Compensation.pdf (policepensioninfo.co.uk)

• Ill Health Retirement Reassessments

Officers who were ill health retired during the remedy period under the provisions of the 1987 scheme need to be reassessed under the provisions of the 2015 scheme in order  that the correct choice can be offered by the schemes. This is because the 2015 pension has a two-tier ill health pension. The NPCC have produced a fact sheet explaining the position (link below). The reassessment involves looking at the tier question nothing else can be considered including banding of injury awards.

There has been a reluctance from some retired officers to engage in the process however it would be advisable to do so as it may result in a better financial position.

NPCC-Member-Remedy-Factsheet-Ill-Health-v2-1.pdf (policepensioninfo.co.uk)