McCloud Remedy Calculator

flyguy66

I and other members of NHS schemes are probably hoping the suggested McCloud remedy options (e.g. shifting 2015 contributions into 2008 scheme) may provide some additional pension income to play with. I'm sure it's down to personal circumstances but quite difficult to do the maths to figure it out, my own efforts suggested marginal differences.

I posted about the retirement calculator that takes into account the remedy suggestion in another thread but thought it might be better as a stand alone for visibility. It's fairly broad brush and maybe lacks all the input you would need to be that confident, but for my circumstances does seem to suggest being better off reverting to the 2008 scheme, equating to about an additional year of scheme membership. Definitive view will be coming sometime in TRS in 2025 I'm told, but that doesn't help with my immediate planning.

https://mccloudnhsmodeller.pensions.gov.scot/  

hugheskevi

flyguy66 said:

I'm sure it's down to personal circumstances but quite difficult to do the maths to figure it out, my own efforts suggested marginal differences.

This is the usual outcome. I suspect some members may have their expectations dashed when they receive their benefit statement under both options, not least due to the general tendency to conflate earlier changes with the 2015 changes in the media when discussing savings.

The savings from changes to public service pension schemes came almost entirely from the 2011 change from RPI to CPI for revaluation and indexation and from the 2012-14 member contribution increases. The change to the 2015 schemes had minimal consequences in overall expenditure, although it does have redistributive consequences for the membership.