2015 Remedy (McCloud) - Immediate Choice
As part of the 2015 Remedy (McCloud), we want to ensure in-scope Pensioner members have a choice on the pension benefits received for service within the Remedy period (1 April 2015 – 31 March 2022)
As part of the 2015 Remedy (McCloud), we want to ensure in-scope Pensioner members have a choice on the pension benefits received for service within the Remedy period (1 April 2015 – 31 March 2022)
Impacted members are those who started to receive their pension between 1 April 2015 and 1 October 2023, and are subject to 2015 Remedy. These members will be receiving an Immediate Choice RSS pack with additional supporting information to help them make their decision. They will have a choice between, either:
You must submit your choice within the 12 months option window, and we encourage members to make their choice as soon as possible. For members who receive their Immediate Choice RSS by August 2025 and return their option form, implementation of choices and updates to pensions will take place from July through to November 2025.
Note: Members who tapered into alpha during the Remedy period will be given two options to choose from. If they do not make a choice within the option window, we will choose the most beneficial option.
We are committed to processing these as efficiently as possible.
*Please note, in cases where members have more complex records, the scheme does have discretion to extend beyond this delivery date.
As part of the 2015 Remedy (McCloud), we want to ensure in-scope Immediate Choice members have a choice on the pension benefits received for service within the Remedy period (1 April 2015 – 31 March 2022).
Your choice is between:
Your Immediate Choice Remediable Service Statement (RSS), which includes additional supporting information, will help you decide.
We must receive confirmation of your choice within 12 months of the date on the letter sent to you, but we encourage you to make your choice as soon as you’re ready. This will allow us to make any necessary changes to your pension benefits.
You will not be able to change your choice once you’ve made it.
All the details about the pension benefits choice process, can be found in the Immediate Choice Remediable Service Statement (RSS) you will receive.
The main way to make your choice is online by logging onto the website advised in the Immediate Choice RSS you will receive. You will need to enter your member number, as confirmed on the letter sent to you (and on the option form), and date of birth to access the online form.
If you are unable to complete this online, you can fill out the paper form provided and post it using the enclosed pre-paid envelope. We also recommend you make a note of your decision on your Immediate Choice Remediable Service Statement for your records.
You will have received a reminder, but if you have not responded within the required 12 months, then the choice will either default to the benefits currently in payment or if you are a tapered member, we will choose the most beneficial option for you.
If your immediate choice results in monies being owed to you, this will be paid following receipt of your choice, and we will send you written confirmation accordingly. We will start processing members’ decisions in the second half of 2025.
From January 2025, MyCSP will start issuing Immediate Choice Remediable Service Statements (RSS) to members impacted by 2015 Remedy. Various factors make these pension calculations more complex, and therefore we expect the exercise to take up to two years. We appreciate your patience and understanding.
Various factors make these pension calculations more complex, and therefore we expect the exercise to take up to two years*. We appreciate your patience and understanding.
*Please note, in cases where members have more complex records, the scheme does have discretion to extend beyond this delivery date.
You are unable to change your choice once you’ve made it.
You will have received an alternative lump sum choice form within the Immediate Choice Remediable Service Statement (RSS) and can choose the equivalent or a different lump sum option on the option form provided or by using the online portal.
We will start processing members' decisions in the second half of 2025.
If you do not return the form it will default to the benefits currently in payment. If you are a tapered member, we will choose the most beneficial option for you.
Deferred benefits may be claimed using the normal retirement claim process separate to your Remedy period choice – the relevant form, together with further information about the minimum pension age, can be found here on the Civil Service Pensions website.
Alpha scheme benefits have a minimum pension age of 55, however the minimum pension age in PCSPS is 50 for those members who joined before 6 April 2006. The benefits shown reflect what benefits are available to you at your retirement date.
On receipt of notification that you have lost or misplaced your Immediate Choice RSS we will arrange to re-issue your RSS to the address originally sent.
We have included all key information, and additional supporting information in your Immediate Choice pack. A dedicated helpline number has also been provided in your RSS pack should you have any further queries.
Any benefits previously bought-out by your employer will also be covered under your alternative option where applicable.
Your benefit options include a deduction for unpaid WPS contributions.
The refund of any WPS contributions (plus interest) has been factored into the lump sum of both options presented where relevant. This amount is net of any premium deduction due to the scheme.
Choosing the alternative option may result in a revision of your current injury benefit amount as indicated in the benefit choices section. Once your choice has been processed your Injury Benefits will be reviewed and any necessary changes will be implemented.
Injury benefit amounts are tax-free, and this should be taken into consideration when making your choice.
Any interest for pension payment differences owed to the scheme has been calculated as daily compound interest, in-line with the NS&I Equivalent Savings Rate, based on the net amount due.
Where your choice results in arrears of pension being due to you, the figures quoted are the gross value. Pension arrears are classed as income and are subject to tax using the current tax code we hold. The interest on pension arrears is treated as savings income and is paid to you without tax deductions*. If you think you have tax to pay, you must notify HMRC: HM Revenue & Customs - GOV.UK
Where your choice results in pension owed to the scheme, the figures quoted are the net amount due and assumes a basic rate tax deduction of 20%. If you choose an option where money is owed to the scheme, figures may need to be revised to reflect your correct marginal rate of tax.
* If you live outside the United Kingdom, we must deduct tax at source at the basic rate.
Where your choice results in an additional pension lump sum being due to you, provided the total of both the lump sum and interest does not exceed the maximum lump sum limit and is paid as a single payment, then it will not be subject to tax. Where the total exceeds the maximum limit, then the excess is treated as savings income and is paid to you without any deductions *. If you think you have tax to pay, you must notify HMRC: HM Revenue & Customs - GOV.UK.
Where the interest is paid as a separate payment to the top-up lump sum, it is treated in the same way as interest paid on pension arrears.
* If you live outside the United Kingdom, we must deduct tax at source at the basic rate.
A contingent decision is a decision you made about your Civil Service Pension, which would have been different had it not been for the discrimination identified by the courts.
The decision will be related to your pension during the Remedy period - 1 April 2015 to 31 March 2022.
If you have made or are planning to make an application for a contingent decision, then you should not make your choice until that is resolved.
We have calculated your Immediate Choice RSS options by using your data as supplied by your employer during your Scheme membership. By using this data, as well as additional collected earnings data from your employer, we have been able to accurately calculate both your Legacy and reform options, as well as determining any under or overpayments.
Where your choice results in you owing monies to the scheme, we will contact you by post to outline how this can be repaid and provide details of our overpayment recovery process.
Please review your Immediate Choice Remediable Service Statement (RSS) and member supporting information documents for further information.
In some circumstances, there may be changes to tax liabilities as a result of applying your immediate choice or default option.
There are details on both the Civil Service Website and the HMRC Website about calculating your public service pension adjustment for tax.
As a tapered member, your benefits in payment are no longer compliant with Remedy legislation, you will therefore be required to make an option. If you do not return the option form, we will choose the most beneficial option for you.
MyCSP is unable to provide advice. However, you can seek Independent Financial advice. Visit the Financial Conduct Authority website for advice on how to find an Independent Financial Adviser.
Your Immediate Choice Remediable Service Statement (RSS) will provide an estimate of the current value of any untaken Remedy period benefits affected by your Remedy choice.
Members who applied for ill health between 1st April 2015 and 31st March 2022 have been considered for a medical reassessment. This reassessment is to understand whether any member who applied for ill health retirement under their existing pension scheme, would have been eligible for ill health benefits under their alternative pension scheme.
Where a reassessment has taken place and a member qualifies for ill health in their alternative scheme, both immediate choice options will show ill health retirement benefits. If a member does not qualify for ill health retirement or their alternative scheme cannot be reassessed, this does not affect the original ill health application decision. As a result, an immediate choice is available. The options will present a comparison between the option with ill health retirement benefits and the alternative option with non-ill health retirement benefits.
The calculated value of annual benefits for your dependants shown reflects the marital status information held on your record at the time the RSS was produced.
Classic survivor pensions will either cease or be reduced to the spouse’s Guaranteed Minimum Pension (GMP) amount, when a spouse/civil partner remarries or lives with a new partner.
Classic survivor pensions are only payable to the member’s spouse or civil partner.
However, under the classic plus, premium, nuvos and alpha schemes, a survivor pension can also be paid to a partner. A partner is someone to whom you are not married or in a civil partnership with, but who you are living with in a long-term relationship, would be eligible to marry (i.e. the partner if previously married must be divorced) and with whom you are financially interdependent.
Where your benefits are or have been subject to abatement, and/or they would be under the alternative option, this has been reflected in the benefit amounts presented in the “your benefit choices” section of the form.
The figures within the ‘untaken Remedy period (01/04/2015 to 31/03/2022) benefits’ section assume that no abatement will apply (as is typical when a member finally leaves service).