The McCloud Remedy
Explained (Police Pensions)
A definitive, plain-English breakdown of the McCloud remedy, who qualifies, how the Deferred Choice Underpin works, and what it means for police pension outcomes.
Trust Notice: Independent explanation of public pension legislation. Not regulated financial advice. Not affiliated with any police force, pension administrator, or government body.
Executive Summary
The McCloud remedy corrects age discrimination introduced during the 2015 public sector pension reforms.
For Eligible Officers
- Service between 1 April 2015 and 31 March 2022 is subject to remedy.
- Members will choose between legacy and 2015 CARE scheme benefits for that period.
- Choice is made at retirement under the Deferred Choice Underpin (DCU).
The remedy does not create a new pension scheme. It restores fairness by allowing eligible officers to choose the more beneficial scheme rules for their remedy-period service.
What Was the McCloud Case?
In 2015, the government reformed public sector pensions. Police officers were moved from the 1987 or 2006 final salary schemes into the 2015 CARE (Career Average Revalued Earnings) scheme.
However, transitional protections allowed older members to remain in legacy schemes, while younger members were moved immediately. In 2018, the Court of Appeal ruled this age-based protection was unlawful discrimination.
The government accepted the ruling, and the McCloud remedy was created to correct that discrimination across all affected public sector schemes.
Who Is Eligible?
Eligible Likely Affected
- Serving before 1 April 2012.
- Pensionable service between 2015 and 2022.
- Moved to 2015 scheme during that period.
Ineligible Not Affected
- Joined the service after April 2015.
- No qualifying pre-2012 service.
This structure is often referred to as the "Remedy Window".
The Remedy Period Explained
For this period only, eligible officers will be allowed
to choose between:
Legacy scheme treatment (1987 or 2006 rules) or 2015 scheme treatment.
All service after 1 April 2022 accrues in the 2015 scheme for everyone.
What Is Deferred Choice Underpin?
Under the Deferred Choice Underpin (DCU), you do not choose now. You make the final decision when you retire or claim your pension benefits.
Comparison at Point of Use
Administrators calculate your benefits under legacy rules and 2015 rules side-by-side.
Informed Decisions
You choose based on real figures and your actual retirement circumstances, not estimates.
Why Scheme Differences Matter
1987 Scheme
- Final salary
- Automatic lump sum
- Earlier retirement age
2006 Scheme
- Final salary
- No automatic lump sum
- Higher retirement age
2015 Scheme
- CARE design
- No automatic lump sum
- SPA linked retirement
There is no universal "better" scheme.
Late-career promotions often favor final salary treatment, while stable career paths may see less difference in outcomes.
Tax and Contribution Implications
The remedy process is complex and may trigger administrative adjustments to your pension contributions and tax positions.
Contribution Adjustments
Recalculations based on different scheme contribution rates (e.g. 1987 vs 2015).
Annual Allowance
Potential for tax refund or charge corrections as pension growth is recalculated.
McCloud Timeline
Pension reforms implemented
Introduction of the 2015 CARE scheme.
Court of Appeal ruling
Age-based protections ruled discriminatory.
Remedy legislation passed
Establishing the "Remedy Period" (2015–2022).
Implementation Phase
Ongoing administrative updates and data reconciliation.
Deferred Choice election
The point at which you make your final decision.
Common Misunderstandings
The McCloud remedy does NOT give extra service.
It does NOT automatically increase your pension.
It does NOT create a new, separate pension scheme.
It does NOT apply to officers who joined after April 2015.
It restores choice — nothing more.
McCloud Eligibility Quick Check
Self-Review Audit
If you answered yes to the first three, you are likely eligible for the remedy.
McCloud Remedy FAQ
Snippet-Optimized Analysis
What is the McCloud remedy in police pensions?
The McCloud remedy corrects age discrimination in the 2015 pension reforms by allowing eligible officers to choose between legacy and 2015 scheme benefits for service between 2015 and 2022.
Who qualifies for the McCloud remedy?
Officers with pensionable service before April 2012 and service during the 2015–2022 remedy period.
When do I choose my McCloud option?
At retirement, under the Deferred Choice Underpin.
Does McCloud increase my pension?
Not automatically. It allows you to choose which scheme rules apply for the remedy period.
Does McCloud affect tax?
It may require contribution and tax recalculations depending on individual circumstances.
Model Your Exact Pension
Use our Police Pension Calculator to estimate your annual income under the 1987, 2006 or 2015 scheme — including early retirement reductions and McCloud impact.
Final Position
The McCloud remedy is about fairness — not generosity. It corrects unlawful discrimination by restoring choice. For eligible officers, the key action is understanding whether you qualify, how your career pattern affects the outcome, and how scheme differences interact with your retirement plan. Understanding the structure now prevents confusion later.