McCloud Remedy
and Divorce
If either of you has police service between April 2015 and March 2022, the McCloud remedy changes how the pension is valued and shared on divorce. This guide explains the 2023 regulations, which rules apply to old and new orders, how GAD's guidance values remedy service, why so many cases were held up, and what the May 2026 SCAPE change means for your CETV.
Independent information, not advice · Sources checked 19 October 2026 · England and Wales unless stated
For divorce CETVs calculated from 1 October 2023, the scheme values 2015 to 2022 remedy service under both legacy and 2015 rules and uses the greater (SI 2023/831 reg 24). For an officer who has not retired, two debits are recorded and the one that applies follows their choice at retirement. Orders based on information given before 1 October 2023 are revisited: the former partner's credit may be increased and the officer's reduction recalculated (regs 18 to 22). GAD's guidance for those old cases arrived in August 2025, so many were delayed.
The McCloud remedy in brief, for divorcing couples
When the 2015 police pension scheme started, older officers stayed in the 1987 or 2006 scheme while younger ones moved across. The Court of Appeal ruled in December 2018 that this transitional protection was age discrimination. The fix, the McCloud remedy, is set out in the Public Service Pensions and Judicial Offices Act 2022 and, for police in England and Wales, the Police Pensions (Remediable Service) Regulations 2023 (SI 2023/831).
- Who is in scope. Broadly, officers in pensionable service on or before 31 March 2012 who also had service in the remedy period (1 April 2015 to 31 March 2022), without a gap of more than five years (PSPJOA s.1). Their service in that period is "remediable service".
- Rollback. On 1 October 2023 all remediable service was placed back in the officer's legacy scheme (GAD calls this rollback). From then on it is paid from the legacy scheme whichever option the officer later chooses.
- The choice. Officers who were active or deferred immediately before 1 October 2023 are "deferred choice" members and choose at retirement between legacy and 2015 rules for the remedy years. Those already retired (or who had died) are "immediate choice" members.
- Divorce. SI 2023/831 Part 4 deals with divorce and dissolution: Chapter 1 Section 2 (regs 18 to 22) for orders based on information given before 1 October 2023, Section 3 (regs 23 to 25) for information given on or after that date, and Chapter 2 (reg 26) for arrangements other than a sharing order.
Whether the officer is in scope, and how the choice works for retirement, is covered in the McCloud remedy explained and the McCloud remedy calculator. This page is only about what the remedy does to a divorce.
| Term | Meaning in a McCloud divorce |
|---|---|
| Remediable service | Police service from 1 April 2015 to 31 March 2022 for an officer in scope of the remedy (PSPJOA s.1) |
| Legacy scheme / reformed scheme | The 1987 or 2006 scheme / the 2015 scheme |
| Rollback | Moving all remediable service back into the legacy scheme on 1 October 2023 |
| Deferred choice member | An officer active or deferred immediately before 1 October 2023, who chooses legacy or 2015 rules for the remedy years at retirement |
| Immediate choice member | An officer who was a pensioner (or had died) immediately before 1 October 2023 |
| Transfer day | The day the sharing order takes effect, which cannot be before the divorce is final |
| Valuation day | The day within the implementation period that the scheme chooses to value the benefits |
| Pension debit member / pension credit member | GAD's terms for the officer whose pension is shared / the former partner who receives the credit |
| Remediable cash equivalent value (RCEV) | GAD's term for the value of the remedy years used in the CETV (the greater-of value in most new cases) |
| Alternative amount | For old orders, the credit worked out as if remedy service had been in the other scheme (reg 19) |
| Remediable credit adjustment | The change to the former partner's credit under an old order (reg 20(2)) |
| Alternative reduction amount | The recalculated reduction to the officer's benefits under an old order (reg 22), or the second reduction worked out after the transfer day in a new case, on the other scheme's basis (reg 25) |
If you are the officer, the remedy can change your pension debit, including after the order. If you are the former partner, it can change the value of your credit, and for old orders you may be owed an increase. Both of you should ask the administrator the questions in the What to Ask section.
Which rules apply to your divorce?
The dividing line is 1 October 2023, but the regulations and GAD's guidance draw it in slightly different ways. Regulation 18 applies the old-order rules where the scheme gave the information needed to work out the share before 1 October 2023. GAD's prospective guidance applies where the initial divorce CETV was calculated on or after that date, even if the request was made earlier (para 1.4 and footnote). GAD's retrospective guidance applies where the transfer day (the day the order took effect) was before 1 October 2023, whenever it was implemented, which the Home Office confirmed (introductory note para 1.7).
| Your situation | Which rules | What happens |
|---|---|---|
| Sharing order whose divorce valuation information was given before 1 October 2023, covering remedy service | SI 2023/831 regs 18 to 22 ("old orders"); GAD retrospective guidance (4 August 2025) where the transfer day was before 1 October 2023 | The scheme works out an alternative credit as if remedy service had been in the other scheme. The credit can be topped up, and in mixed cases adjusted either way. The officer's reduction is recalculated |
| Sharing order where the divorce CETV was calculated on or after 1 October 2023 | SI 2023/831 regs 23 to 25; GAD prospective guidance (21 March 2025) | Remedy service is valued as the greater of legacy and reformed scheme values. For an officer who has not yet retired, two debits are recorded and the one that applies follows the officer's later choice |
| No sharing order (offsetting, or an attachment order), divorce taking effect on or after 1 October 2023 | SI 2023/831 reg 26; GAD prospective guidance para 1.31 | The value of remedy service for the proceedings is the greater of the two valuations |
| CETV calculated before 1 October 2023, but the order took effect on or after that date | Regulation 18 turns on when the information was given; GAD's retrospective notes are stated for transfer days before 1 October 2023 and the prospective note excludes these cases (para 1.20) | We could not find published GAD guidance on the hub page for this group. Ask the administrator which route it is using and why |
| The order does not cover any remedy service (for example it ended before 1 April 2015, or a protected member's order covers only the 2015 scheme) | GAD retrospective introductory note, section 3 | The McCloud remedy for divorce does not apply, and the calculations are not revisited |
To place your own case, answer four questions in order:
- Does the officer have remediable service? If they were not in a police scheme on or before 31 March 2012, or had no service between April 2015 and March 2022, or had a disqualifying gap, the remedy does not apply and nothing on this page changes your divorce.
- Does the order (or proposed order) cover that service? If the marriage or the order's scope does not reach the remedy years, the remedy does not apply to the divorce.
- When was the divorce valuation given, and when did the order take effect? Before 1 October 2023 points to the old-order rules; on or after points to the greater-of rules.
- Is there a sharing order at all? If not, regulation 26 governs the value used.
The fourth row is a genuine gap in what we could find. The prospective note says cases where the court had a CETV calculated before 1 October 2023 are not covered "even if the PSO had not been implemented by 30 September 2023" (para 1.20), while the retrospective note is written for transfer days before 1 October 2023. If you are in that position, ask the administrator in writing which method it has used. PAG2, written in October 2023 before GAD's notes, expected such cases to be shared ignoring the remedy and then reassessed (para I.52).
How the pension is split: the three tranches
Both GAD notes divide a remedy member's shareable pension into three tranches, value each under its own guidance, then add them together (prospective para 1.11 and 1.21; retrospective para 1.10).
| Tranche | Service | Paid from | Valued using |
|---|---|---|---|
| Tranche 1 | Legacy scheme service before 1 April 2015 | The legacy scheme (1987 or 2006) | The legacy scheme's normal divorce guidance and factors |
| Tranche 2 | Remedy service, 1 April 2015 to 31 March 2022 | The legacy scheme, after rollback on 1 October 2023, whichever option the officer later chooses | The McCloud divorce guidance: greater of legacy and reformed values (new cases), or the alternative amount rules (old orders) |
| Tranche 3 | 2015 scheme service from 1 April 2022 | The 2015 (reformed) scheme | The 2015 scheme's normal divorce guidance and factors |
Two practical points follow. First, the CETV letter should show the legacy scheme value (Tranches 1 and 2 together) separately from the 2015 scheme value (Tranche 3): GAD tells administrators to quote them that way (prospective paras 2.2 and 2.3). Second, the former partner's credit for Tranches 1 and 2 is created in the legacy scheme and any Tranche 3 credit in the 2015 scheme (para 4.3), so a former partner may end up with two credits paid at different ages: 60 or 65 for a legacy credit, State Pension age for a 2015 credit.
Scotland. GAD's prospective guidance also covers Scottish divorces, where the legacy annex usually states a cash amount. The scheme works out an implied percentage by dividing that amount by the recalculated values of Tranches 1 and 2 together, and applies it to both; Tranche 1 counts only if it was built up during the marriage (paras 3.7 to 3.11). Scottish police pensions are administered by SPPA, whose own McCloud divorce practice we have not checked. See police divorce in Scotland.
The remedy only reaches service from 1 April 2015 to 31 March 2022. Pre-2015 legacy service and post-2022 service are valued the ordinary way, which the settlement guide explains.
Old orders: information given before 1 October 2023
If your sharing order was based on a CETV that ignored the remedy, the scheme must go back to it. The steps in regulations 18 to 22 are summarised below.
| Step | What the regulations say | Regulation |
|---|---|---|
| Alternative amount | As soon as reasonably practicable after 30 September 2023, and after consulting the scheme actuary, the scheme works out what the credit would have been if the remedy service had been in the other scheme. For an order covering both schemes ("mixed service") it is the greater of a legacy and a reformed amount | Regs 19 and 20(1) |
| Remediable credit adjustment | If the alternative amount is greater than the original, the former partner's credit is increased by the difference. For mixed-service orders the adjustment also applies if the alternative amount is lower | Reg 20(2) |
| Statement to the former partner | The scheme had to send the credit member a statement of the alternative amount and any adjustment by the end of 30 September 2024 | Reg 20(3) |
| Which account is adjusted | The adjustment is treated as made on the original transfer day. A credit member with credits in both schemes can ask, in writing within six months of the statement (or later if the scheme agrees), for one account to be used; the request cannot be withdrawn. With no request, the legacy account is used | Reg 21 |
| The officer's side | The scheme works out an "alternative reduction amount" for the officer, having regard to the cash equivalent in the other scheme, the percentage in the order and WRPA ss.29 and 31 | Reg 22 |
Which retrospective note applies. GAD's retrospective guidance has three parts by where the shared remedy service was built up: note L where it was all in the legacy scheme (protected members, and taper protected members whose order relates only to the legacy scheme), note R where it was all in the 2015 scheme (unprotected members, and taper protected members whose order relates only to the 2015 scheme), and note M where it was in both (taper protected members with an order covering both schemes). Calculations use the factors in force on the valuation day, with the transfer day as the calculation date (para 3.11).
Who is left out. An order whose transfer day was before 1 April 2015, or where the officer left before that date, has no remedy service to revisit. A protected member's order covering only the 2015 scheme, or an unprotected member's covering only the legacy scheme, does not cover remedy service either (retrospective para 3.2 to 3.3). Where someone has orders from more than one divorce, GAD tells administrators to refer the case to the Home Office (para 3.6).
The regulations required your statement by 30 September 2024, but GAD's retrospective guidance is dated 4 August 2025 and the Federation said in December 2025 that held cases would now be dealt with. If you have heard nothing, write to the administrator and ask for the alternative amount, any remediable credit adjustment and the date of your statement. If you have credits in both schemes, note the six-month window to choose which account is adjusted (reg 21). We could not confirm how many statements were sent on time.
Added years, added pension, transfers and other special cases
A few features need extra steps in both old and new cases. If any apply to you, expect the calculation to take longer and ask the administrator to explain how it has treated them.
| Feature | How the McCloud divorce guidance treats it | Source |
|---|---|---|
| Added years bought during the remedy years | On the legacy option the value includes the added years benefits; on the 2015 option it includes the compensation payment for them (net of tax relief, with interest). Any debit applies to whichever the officer ends up with | Prospective para 1.13; retrospective paras 1.14 to 1.15 |
| Added pension bought during the remedy years | The added pension is extinguished whatever the officer chooses, and any debit on it from the original transfer day is extinguished too. In old orders, the compensation for it and any amount owed are allowed for | Retrospective paras 1.16 to 1.17; prospective para 1.14 |
| Transfers in received during the remedy years | Valued first under GAD's separate guidance on McCloud and transfers in and the Public Sector Transfer Club memorandum | Prospective para 1.12; retrospective para 1.11 |
| Separate elections for two employments | Each employment is treated separately, and may fall in a different group | Prospective para 1.8; retrospective para 1.18 |
| Partial retirement | The CETV includes both the pension in payment and the benefits not yet in payment; the group depends on whether a final remedy choice has been made | Prospective para 2.6 |
| Orders from more than one divorce | Not covered by the retrospective guidance; referred to the Home Office | Retrospective para 3.6 |
For the officer. Regulation 22 has the scheme recalculate your reduction ("alternative reduction amount"). The regulation's wording is about the reduction to your benefits rather than using the word debit, and it has regard to the cash equivalent in the other scheme and to the percentage in your order. Ask what your recalculated reduction is and from when it applies.
New cases: CETVs from 1 October 2023, the greater-of value and two debits
For divorce CETVs calculated on or after 1 October 2023, regulation 24 requires the scheme to calculate the cash equivalent of remediable benefits twice, once as if they were in the legacy scheme and once as if in the 2015 scheme, and to use "the greater of" the two for the credit and debit. It applies to deferred choice members whose remedy benefits are not yet in payment, and to immediate choice pensioners who have not yet made their choice.
GAD's prospective guidance turns this into formulas for four groups of officers. For the most common case, an officer still serving or deferred (group 1), the remediable value is the larger of the legacy value and the reformed value plus a "contribution adjustment" (para 2.10). The contribution adjustment reflects the difference between the contributions the officer paid in the legacy scheme for the remedy years and what they would have paid in the 2015 scheme, net of tax and with interest (para 2.9).
| Officer's position (GAD group) | Value of remedy service for the CETV | Debit |
|---|---|---|
| Group 1: active or deferred, deferred choice not yet in payment | The greater of the legacy value and the reformed value plus a contribution adjustment | Two debits recorded: legacy and reformed. The legacy debit applies until the officer's pension starts; if they choose 2015 rules for remedy service, it is switched to the reformed debit, plus a contribution adjustment debit |
| Group 2: pensioner who has made a final remedy choice (or had the default applied) | Valued on the scheme they chose, with no allowance for under or overpayments | One debit, on the chosen basis |
| Group 3: immediate choice pensioner (protected or unprotected), or a deferred choice pensioner, choice not yet made | The greater of the current scheme value and the alternative scheme value, with adjustments for past under or overpayments and contributions | A debit on the pension in payment now; recalculated on the alternative basis if the officer later chooses it, with debits applied to the arrears and contribution adjustments |
| Group 4: immediate choice pensioner who was taper protected, choice not yet made | The greater of the two alternative values, each with adjustments | As group 3, following the eventual choice |
Two debits. For group 1, the administrator calculates and records two debits for the remedy years: one on legacy rules and one on 2015 rules, both at the percentage in the legacy scheme annex, both revalued as usual from the transfer day (paras 5.6 to 5.9). Until the officer makes the deferred choice and the pension comes into payment, the legacy debit applies, because the service is in the legacy scheme. If the officer then chooses 2015 rules for the remedy years, the debit is switched to the reformed one (para 5.10).
Contribution adjustment debit. If the officer chooses 2015 rules, a further debit applies to the contribution adjustment: the adjustment times the order's percentage (para 5.11). If they choose legacy rules, there is no contribution adjustment debit.
If the officer chooses between the CETV and the transfer day. The Home Office's policy, recorded by GAD, is to protect the former partner: where the first CETV used the greater-of value, the recalculated value at the transfer day also uses it, even if the officer has since made an irrevocable choice (para 3.5).
Which date decides the officer's group
An officer can move between groups during a divorce, for example by retiring or by making their remedy choice between the first CETV and the order. GAD's guidance fixes which date counts for which step.
| Calculation | Officer's position is taken at | Source |
|---|---|---|
| The first divorce CETV given to the court | The initial CETV calculation date | GAD prospective para 1.6 |
| The recalculated value when the order is implemented | The transfer day (the day the order takes effect) | GAD prospective paras 1.6 and 3.4 |
| The former partner's credit | The transfer day, using factors in force on the valuation day | GAD prospective paras 4.2 and 4.3 |
| The officer's debits | The transfer day; debits apply with effect from that day and are revalued as usual | GAD prospective paras 5.7 to 5.9 |
The contribution adjustment, in plain terms
Officers in the 1987 and 2006 schemes paid contributions at the legacy scheme rates; in the 2015 scheme they would have paid at the 2015 rates. If the legacy contributions for the remedy years were higher, choosing 2015 rules means the officer is owed compensation, and GAD adds that (as a positive number) to the reformed value before comparing it with the legacy value. If the legacy contributions were lower, the officer would owe contributions, and the adjustment is negative (para 2.10). Either way it is calculated net of the tax relief waived under the 2022 Act and with interest. The effect is that the comparison is between two complete packages, not just two pensions.
If the officer has already retired
Immediate choice pensioners (those who had retired, or died, before 1 October 2023) and the occasional deferred choice member who started legacy payments before choosing are valued differently, because there is a pension in payment and possibly arrears to settle. For a pensioner who has not made a final choice (group 3), GAD compares the value of the pension they are receiving now with the value of the alternative scheme's pension, adjusted for past under or overpayments and contributions (para 2.18). For the alternative, the administrator assumes the officer retired at their actual retirement age, applies any early or late payment adjustment of the alternative scheme, and assumes the minimum commutation that scheme would allow; for ill-health retirements it first checks whether the officer would have qualified for ill-health benefits under the alternative scheme (para 2.15).
The debit is then applied to the pension actually in payment from the transfer day. If the pensioner later chooses the alternative scheme, the administrator works out what that pension would have been, applies the debit to it, and also debits the arrears adjustment and contribution adjustment at the order's percentage (paras 5.17 to 5.25). The wider position for retired officers, including the pensioner cash equivalent and the lump sum already taken, is in divorce after police retirement.
The credit is worked out on whichever option is worth more for the remedy years, but the officer will end up with only one option. If the officer later picks the option that was worth less, they have shared a value based on the other one, and their debit follows the option they chose. That is the design of the rules, not an error; it is worth understanding before you agree a percentage.
The annex trap: sharing remedy service needs a legacy scheme annex
Because remedy service sits in the legacy scheme after rollback, the scheme looks at which annexes the court order includes. GAD's prospective guidance says that if the order has only one annex, relating to the 2015 (reformed) scheme, "no further action is required": the court is treated as having decided the remedy service is not to be shared, which effectively sets that percentage at 0% (para 3.1). Remedy service is shared only where there is at least one annex relating to the legacy scheme (paras 3.3 and 4.1).
- The percentage in the legacy scheme annex applies to the remedy years and to any pre-2015 legacy service (para 3.6).
- Any 2015 scheme annex applies to service from 1 April 2022 (Tranche 3).
- In Scotland the legacy annex usually gives a cash amount, which the scheme converts into an implied percentage across Tranches 1 and 2 (paras 3.7 to 3.11).
Ask the administrator to check the draft order and Form P1 annexes before they are sealed. The scheme can only implement the order it receives; if the annexes are wrong, putting that right is a matter for your solicitor and the court, not the administrator.
Worked illustration, in words
This is a made-up illustration, with no figures, to show the order of events. It is not a real case. An officer joined in 2008 in the 2006 scheme, moved to the 2015 scheme in 2015 as an unprotected member, and is still serving. The couple separate and a divorce CETV is requested in 2026, after 19 May.
- Valuation. The administrator values the 2008 to 2015 service (Tranche 1) on the 2006 scheme's divorce factors. For 2015 to 2022 (Tranche 2), it values the service twice: as 2006 scheme benefits, and as 2015 scheme benefits plus the contribution adjustment, and uses the larger. Service from April 2022 (Tranche 3) is valued on 2015 scheme factors. All use the factors in force after 19 May 2026.
- The CETV letter. It shows a legacy (2006) scheme value for Tranches 1 and 2 together, and a 2015 scheme value for Tranche 3.
- The order. The couple agree percentages, and the order has two annexes: one for the 2006 scheme and one for the 2015 scheme. If they had only filed a 2015 scheme annex, the 2008 to 2022 service would not have been shared at all.
- Implementation. The administrator recalculates the values at the valuation day, creates a 2006 scheme credit (paid from 65) and a 2015 scheme credit (paid from State Pension age), and records the officer's debits: an ordinary debit for Tranche 1, two alternative debits for Tranche 2, and an ordinary 2015 scheme debit for Tranche 3.
- Retirement, years later. The officer makes the deferred choice. If they choose 2006 rules for the remedy years, the legacy debit already in place continues. If they choose 2015 rules, the Tranche 2 debit is switched to the reformed debit and a contribution adjustment debit applies. The former partner's credits do not change either way.
Negotiating with the remedy in mind
The rules are fixed, but they affect what a fair percentage looks like. Points a solicitor or expert may raise:
- Likely choice. If the officer is likely to choose the option worth less in CETV terms (for example to retire earlier under legacy rules, or for the lump sum), the shared value and the officer's eventual debit rest on different options. An expert can model both.
- Timing near retirement. An officer who retires and chooses between the first CETV and the order does not lose the greater-of value for the partner; the Home Office's policy protects it (prospective para 3.5).
- Equal income, not just equal capital. The legacy credit is paid at 60 or 65 and any 2015 credit at State Pension age. Two credits at different ages make an equal income calculation more complicated, which is a reason for expert input. See offsetting vs sharing.
- Fresh figures. Any figure agreed on a CETV from before 19 May 2026 should be checked against a new one.
For actual numbers on your service, the police pension divorce calculator gives an estimate by scheme, and the McCloud remedy calculator compares legacy and 2015 rules for the remedy years. Neither replaces the administrator's figures.
Offsetting and attachment cases: regulation 26
Not every divorce ends in a sharing order. Where the officer keeps the pension and the other person takes more of the house or savings, or where an attachment order is made, the scheme is still asked for a value. Regulation 26 covers this: where the divorce or dissolution takes effect on or after 1 October 2023 (and before the officer's remedy choice takes effect or the election period ends), and the rights are not subject to a sharing order, the scheme must value the remedy service as if in the legacy scheme and as if in the 2015 scheme, after consulting the scheme actuary, and the value for the proceedings is the greater of the two.
GAD's prospective guidance says that for these "value of benefits" requests the scheme should provide the same remediable value it would calculate for a sharing case (para 1.31). Regulation 26 does not name offsetting or attachment orders; it applies to any valuation for the proceedings where there is no sharing order.
Because offsetting trades a pound figure for capital, the greater-of value and the date of the CETV matter more than they do for a percentage-based sharing order. The offsetting vs sharing guide explains why a police CETV is a poor stand-in for cash in the first place.
GAD's guidance and the sharing order backlog
Administrators could not finish McCloud divorce cases until GAD, the Home Office's actuary, issued guidance on how to calculate them. The documents, all addressed to the Home Office and published on GAD's Factor Guidance Hub, are:
- 21 March 2025: prospective full guidance, for initial CETVs calculated on or after 1 October 2023, alongside separate guidance on McCloud and transfers out.
- 4 August 2025: retrospective full guidance for transfer days before 1 October 2023: an introductory note and notes L, R and M.
The Police Federation tracked the effect in its national pensions newsletters. In July 2025 it listed "delays for those with Pension Sharing Orders" because the necessary GAD guidance was missing, said the prospective guidance for divorces since 1 October 2023 had been published, and expected the retrospective guidance by mid-July. In December 2025 it reported that the guidance for members with sharing orders "has been published" and that administrators would "now start to deal with those cases which were on hold".
We could not find published figures for how many police sharing orders were held, or how long they took once the guidance arrived. GAD's notes say they must not be reproduced, so this page summarises them; your solicitor or expert can ask the administrator for the method used in your case.
If your case is delayed or you think the figures are wrong
- Write to the administrator. Ask which regulations and which GAD note it is applying, what it is waiting for, and when it expects to finish. Keep copies and note the dates.
- Ask your Federation branch if you are a member. The Federation has been tracking remedy and sharing order delays nationally.
- Use the scheme's dispute procedure. Occupational pension schemes must have arrangements for resolving disagreements with people who have an interest in the scheme (Pensions Act 1995 s.50). Ask the administrator for its internal dispute resolution procedure.
- Then the Pensions Ombudsman, a free, independent service that decides pension complaints the scheme has not resolved.
- Keep your solicitor informed, especially if the divorce is not yet final: a pending recalculation can affect what you agree and when you apply for the final order.
The 19 May 2026 SCAPE change: why older CETVs may need redoing
On 19 May 2026 HM Treasury raised the SCAPE discount rate, which drives public service CETVs, from CPI plus 1.7% to CPI plus 2.0%. GAD said certain calculations had to be suspended immediately. For the police in England and Wales, new CETV tables, pensioner divorce tables, pension credit tables and debit adjustment tables were issued on 21 May 2026 and implemented from 19 May. The NPCC's FAQs said values "may also be lower than under previous factors" and that values given during the change "may be provisional".
- A CETV dated before 19 May 2026 was on the old basis. If it was used to agree a deal in pounds (an offset, or a percentage worked out to hit a target figure), ask for a fresh one.
- A sharing order percentage is applied to the CE recalculated on the valuation day, using the factors then in force (GAD 1987 note para 3.16). So the order still works, but the pound value of the credit will be on the new basis, which may not be what you expected when you agreed it.
- Scottish orders state a cash amount, which the scheme turns into a percentage by dividing it by the CE (GAD 1987 note para 3.49). A lower CE means the same cash amount is a higher percentage of the officer's pension. See police divorce in Scotland.
- McCloud cases are calculated on the factors in force on the valuation day (retrospective para 3.11; prospective para 3.4), so old orders still being revisited will use the new factors.
| GAD table group (Police E&W) | What it is used for in a divorce | Status after the SCAPE change |
|---|---|---|
| Tables 201 to 221 | Cash equivalents (CETVs) for active and deferred members | Issued 21 May 2026, implemented from 19 May 2026 |
| Tables 301 to 312 | Pensioner cash equivalents on divorce | Issued 21 May 2026, implemented from 19 May 2026 |
| Tables 313 to 318 | Converting the credit into the former partner's pension | Issued 21 May 2026, implemented from 19 May 2026 |
| Tables 319 to 336 | Adjusting the officer's debit for when they retire | Issued 21 May 2026, implemented from 19 May 2026 |
| Tables 505 to 507 | 1987 scheme commutation, which also sets the lump sum on a pension reduced by a debit | Issued and implemented 21 May 2026 |
GAD's 2026 assumption set uses a discount rate of 2% a year above CPI, against 1.7% in the 2023 set. A higher discount rate means future pension payments are worth less in today's money, which is why CETVs and pension credit values fall. It does not reduce anyone's actual pension. The table list above comes from GAD's workbook; GAD's notes say the factors must not be reproduced, so ask the administrator for the figures that apply to you.
For the background, see the SCAPE discount rate explained and why police pension quotes were suspended in May 2026.
Timeline: McCloud, divorce and the 2026 factor change
| Date | What happened | Why it matters on divorce |
|---|---|---|
| 1 April 2015 | Police Pension Scheme 2015 starts; younger officers move to it, older ones stay in 1987 or 2006 under transitional protection | Start of the remedy period |
| December 2018 | Court of Appeal rules the transitional protection discriminatory (McCloud [2018] EWCA Civ 2844) | Leads to the remedy for 2015 to 2022 service |
| 2022 | Public Service Pensions and Judicial Offices Act 2022 | Sets the framework: remediable service, immediate and deferred choice |
| 31 March 2022 | Remedy period ends; legacy schemes close; everyone in the 2015 scheme from 1 April 2022 | Service from here is Tranche 3 |
| 1 October 2023 | Rollback: remedy service moved back into the legacy schemes. SI 2023/831 Part 4 applies to divorce | Divorce CETVs from here use the greater-of rule; earlier ones are "old orders" |
| 30 September 2024 | Deadline for statements to credit members under old orders (reg 20(3)) | Credit members should have been told of any adjustment |
| 21 March 2025 | GAD's prospective divorce guidance for police | Administrators can calculate CETVs on the greater-of basis |
| July 2025 | Police Federation pensions newsletter: prospective guidance published; delays for sharing orders awaiting retrospective guidance | Old order cases still on hold |
| 4 August 2025 | GAD's retrospective guidance: introductory note and notes L, R and M | Administrators can revisit old orders |
| December 2025 | Police Federation: the guidance for pension sharing orders "has been published"; cases on hold to be dealt with | Backlog starts to be worked through |
| 19 May 2026 | HM Treasury raises the SCAPE discount rate from CPI + 1.7% to CPI + 2.0%; affected calculations suspended | Divorce CETVs before this date used the old basis |
| 21 May 2026 | GAD issues new police factors (CETV, pensioner CE, credit and debit adjustment tables), implemented from 19 May | New CETVs, credits and debit adjustments are calculated on the new basis |
| 4 September 2026 | GAD consolidated factor workbook 2026-03 issued | The current police factor set as at this guide's date |
Dates are from the regulations, GAD's documents, the Police Federation's newsletters and GOV.UK, listed in the sources. The Court of Appeal date is as given in PAG2 (Appendix I para I.3). Your own case also has its own dates: the CETV calculation date, the transfer day (when the order takes effect, after the final order) and the valuation day (when the scheme implements it, within four months of having everything it needs). The divorce checklist puts those in order.
What to ask the pension administrator
Ask in writing, say the request is for divorce proceedings (the deadline for a valuation is then 6 weeks rather than 3 months), and keep copies. Active and deferred members get one free divorce CETV in any 12 months.
| Question to the administrator | Why |
|---|---|
| Does the officer have remediable service, and are they an immediate choice or deferred choice member? | Decides whether McCloud applies and which GAD group they fall in |
| Please give the divorce CETV split into Tranche 1, Tranche 2 (remedy service) and Tranche 3 | Each part is valued differently and paid from a different scheme |
| For Tranche 2, what are the legacy value, the reformed value and the contribution adjustment, and which is used? | The greater-of rule means the CETV may be on the option the officer will not choose |
| What is the calculation date of the CETV? Is it after 19 May 2026? | Earlier CETVs used the old SCAPE rate |
| Has the officer made, or been defaulted to, an irrevocable remedy choice? | Changes how the CETV and debit are worked out |
| Which scheme annexes does the draft order need to share remedy service? | Remedy service sits in the legacy scheme after rollback; an order with only a 2015 scheme annex does not share it |
| For an old order: what is the alternative amount, is there a remediable credit adjustment, and when was or will the statement be sent? | The statement deadline was 30 September 2024; many cases were held for guidance until 2025 |
| For an old order: what is the officer's alternative reduction amount, and from when does it apply? | The officer's pension or deferred benefits may change |
| What are your charges for this work? | Charges must be notified in writing in advance |
What to do, depending on who you are
| You are | Your situation | What to do |
|---|---|---|
| The former partner | Old order (before October 2023) covering 2015 to 2022 service | Ask for your regulation 20 statement, the alternative amount and any credit adjustment; if you have two credits, decide within six months which account is adjusted |
| The officer | Old order covering 2015 to 2022 service | Ask for your alternative reduction amount under regulation 22 and from when it applies; check it against your remedy statement |
| The former partner | Negotiating now | Make sure the CETV is dated after 19 May 2026 and shows the Tranche 2 legacy and reformed values; check the order has a legacy scheme annex |
| The officer | Negotiating now | Ask for both Tranche 2 values; understand that the credit uses the higher one and your debit will follow your later choice; model your likely choice before agreeing a percentage |
| Either of you | Offsetting instead of sharing | Ask for the regulation 26 value and when it was calculated; get expert advice on what the value means for an offset |
| Either of you | Officer already retired, choice not made | Ask how the pension in payment, any arrears and the alternative scheme have been valued, and how the debit would change after the choice |
If you need help with the remedy itself (your remediable service statement, contribution adjustments or the choice), your Police Federation branch is a good first stop for members. For the order, use a family solicitor; where the pension is a large part of the money, a pension on divorce expert who understands the remedy. The Form E guide covers what to put in the pension section.
Myths and facts about McCloud and divorce
| Myth | Fact |
|---|---|
| McCloud has nothing to do with divorce. | SI 2023/831 has a whole Part (Part 4) on divorce and dissolution, covering old orders, new cases and valuations where there is no sharing order. |
| A CETV from before October 2023 is still fine to use. | It ignored the remedy. For new proceedings, the scheme now values remedy service on the greater-of basis, and from 19 May 2026 on new SCAPE factors too. Ask for a fresh one. |
| My ex's share will change when I make my McCloud choice at retirement. | For an officer who has not retired, the credit is fixed when the order is implemented, on the greater-of value. What can change later is the officer's own debit, which is switched if they choose 2015 rules. |
| The remedy only ever benefits the officer. | For old orders, the former partner's credit is topped up if the alternative amount is greater (reg 20). For new cases, the CETV uses the greater value, which tends to favour the person receiving the share. |
| Once a sharing order was implemented, it could not change. | Old orders covering remedy service are revisited under regs 18 to 22: the credit may be adjusted and the officer's reduction recalculated. |
| If the order shares the 2015 scheme, the remedy years are covered. | After rollback, remedy service is in the legacy scheme. GAD says an order with only a reformed scheme annex shares none of it (prospective guidance para 3.1). |
| The contribution refund from McCloud is the officer's alone. | Where a debit applies and the officer later chooses 2015 rules for remedy service, a contribution adjustment debit at the order's percentage applies (prospective guidance para 5.11). |
What we could not verify
- Which GAD method applies where the CETV was calculated before 1 October 2023 but the order took effect after it. We found no published note on the hub page that covers this group explicitly.
- How many credit members received their regulation 20 statement by 30 September 2024, and how many police sharing orders were held awaiting guidance.
- The HM Treasury Directions under the 2022 Act: we did not read them and cannot say whether they contain anything specific to divorce.
- How Scottish (SPPA) and Northern Ireland police schemes have applied their own remedy regulations to divorce. This page covers England and Wales.
- Typical extra charges administrators make for McCloud divorce calculations. Charges must be notified in advance, so ask.
If you have an official source that settles any of these, our corrections policy explains how to tell us.
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Frequently Asked Questions
How does the McCloud remedy affect pension sharing on divorce?
Police service from 1 April 2015 to 31 March 2022 can be taken under legacy or 2015 scheme rules. For divorce CETVs calculated from 1 October 2023, the scheme values that service both ways and uses the greater value (SI 2023/831 reg 24). Older sharing orders covering that service are revisited and the former partner's credit may be increased (regs 18 to 22).
What is a McCloud pension sharing order?
It is an ordinary pension sharing order that covers remediable service, that is police service between 1 April 2015 and 31 March 2022 for an officer in scope of the remedy. The order is made in the usual way, but the scheme applies the McCloud divorce rules when it values and implements it.
My divorce was settled before October 2023. Will my pension share be recalculated?
If the order covers remedy service, yes. The scheme must work out an alternative credit as if the remedy service had been in the other scheme, increase the credit if that is greater (or adjust either way for mixed-service orders), and recalculate the officer's reduction. The regulations set 30 September 2024 for the statement, but GAD's guidance for these cases was not issued until 4 August 2025.
Will my ex's pension credit change when I make my McCloud choice?
For an officer still serving or deferred, no: the credit is worked out at implementation using the greater of the legacy and reformed values. What changes is the officer's own debit. Two debits are recorded and the legacy one applies until retirement; if the officer chooses 2015 rules for the remedy years, the debit is switched to the reformed one.
Does the McCloud remedy apply if we offset the pension instead of sharing it?
Yes, for the valuation. Where the divorce takes effect on or after 1 October 2023 and there is no sharing order, regulation 26 requires the scheme to value remedy service both ways and use the greater of the two. GAD tells administrators to give the same remediable value for these requests.
Why were police pension sharing orders delayed?
Administrators needed GAD's guidance to calculate McCloud divorce cases. The Police Federation's July 2025 newsletter said orders were delayed for lack of the retrospective guidance, which GAD issued on 4 August 2025. Its December 2025 newsletter said the guidance had been published and cases on hold would now be dealt with.
What are Tranche 1, Tranche 2 and Tranche 3?
GAD splits an officer's pension into three parts for divorce: legacy service before April 2015 (Tranche 1), remedy service from April 2015 to March 2022 (Tranche 2), and 2015 scheme service from April 2022 (Tranche 3). Each is valued under its own guidance and the results are added together.
What is the contribution adjustment in a McCloud divorce valuation?
Officers paid different contributions in the legacy and 2015 schemes. If the officer would have paid different contributions under 2015 rules for the remedy years, GAD's guidance adds that difference (net of tax, with interest) to the reformed scheme value when comparing the two, and a matching contribution adjustment debit applies if the officer later chooses 2015 rules.
Do I need a new CETV because of McCloud or the 2026 SCAPE change?
Usually, yes, if yours is from before 1 October 2023 (it ignored the remedy) or before 19 May 2026 (it used the old SCAPE rate, so it was higher than under the new factors). The NPCC said values given during the change could be provisional. A sharing order is recalculated at implementation anyway, but agreements made in pounds rely on the figure you used.
What does the order need to say to share McCloud remedy service?
After rollback on 1 October 2023, remedy service sits in the legacy scheme. GAD says that if the court issues an order with only a 2015 (reformed) scheme annex, the remedy service is treated as not shared. Ask the administrator which annexes it needs before the order is drafted.
What if I have already retired and not yet made my McCloud choice?
For an immediate choice pensioner who has not chosen, the CETV uses the greater of the current and alternative scheme values, with adjustments for past payments. The debit is applied to the pension in payment and recalculated if you later choose the alternative scheme. See our guide to divorce after police retirement.
Who should I ask about McCloud and my divorce?
The pension administrator for the figures and which rules it is applying; your Police Federation branch for remedy queries; a family solicitor for the order; and, where the pension is a large part of the money, a pension on divorce expert who understands the remedy. Ask the administrator in writing and keep copies.
Sources and how we checked them
Every factual claim on this page was written from the sources below, read on 19 October 2026. Rules and figures change, so check the source for the date you are reading this. Where we could not confirm something from an official or independent source, the page says so rather than guessing. Spotted something out of date? See our corrections policy.
- Police Pensions (Remediable Service) Regulations 2023 (SI 2023/831), Part 4 : regs 18 to 22 (information before 1 October 2023), 23 to 25 (on or after), 26 (no sharing order) (accessed 19 October 2026)
- SI 2023/831, regulation 20 : alternative amount, remediable credit adjustment, statement by 30 September 2024 (accessed 19 October 2026)
- SI 2023/831, regulation 24 : greater of legacy and reformed scheme cash equivalents (accessed 19 October 2026)
- SI 2023/831, regulation 26 : valuation where there is no sharing order (accessed 19 October 2026)
- Public Service Pensions and Judicial Offices Act 2022, section 1 : remediable service and the disqualifying gap (accessed 19 October 2026)
- GAD: Pension sharing on divorce for McCloud members, prospective full guidance, Police England and Wales (21 March 2025) : groups 1 to 4, RCEV formulae, tranches, annexes (3.1), two debits (5.6 to 5.10), contribution adjustment debit (5.11); summarised, not reproduced (accessed 19 October 2026)
- GAD: Pension sharing on divorce for McCloud members, retrospective full guidance, introductory note (4 August 2025) : transfer day before 1 October 2023; notes L, R and M; exclusions; multiple orders referred to the Home Office (accessed 19 October 2026)
- GAD Factor Guidance Hub: Police (England and Wales) guidance notes : list of the McCloud divorce notes and the scheme divorce notes (accessed 19 October 2026)
- Police Federation of England and Wales: July 2025 pensions newsletter : prospective guidance published; sharing orders delayed awaiting retrospective guidance (accessed 19 October 2026)
- Police Federation of England and Wales: December 2025 pensions newsletter : guidance for pension sharing orders published; cases on hold to be dealt with (accessed 19 October 2026)
- Government Actuary's Department: Public service pension schemes, new CETV factors (GOV.UK, 16 June 2026) : SCAPE change on 19 May 2026; suspended factors; new factors within 11 working days (accessed 19 October 2026)
- GAD Factor Guidance Hub: Police (England and Wales) consolidated factor workbooks : divorce-related tables issued 21 May 2026 and implemented 19 May 2026; workbook 2026-03 (4 September 2026) (accessed 19 October 2026)
- NPCC: Police pension scheme FAQs on the SCAPE discount rate change (May 2026, hosted by Lincolnshire Police Federation) : values may be provisional during the change and lower than under previous factors (accessed 19 October 2026)
- GAD: Police 1987 scheme transfer values and pension sharing guidance (10 December 2020) : factors in force on the valuation day (para 3.16); Scottish cash amounts converted to a percentage (para 3.49) (accessed 19 October 2026)
- Welfare Reform and Pensions Act 1999, section 29 : debit and credit based on benefits to the transfer day (accessed 19 October 2026)
- Pension Advisory Group: A Guide to the Treatment of Pensions on Divorce, second edition (Nuffield Foundation, 2024), CC BY 4.0 : Appendix I paras I.3 and I.41 to I.52 on McCloud and divorce, written before the final regulations (accessed 19 October 2026)
- Pensions Act 1995, section 50 : dispute resolution arrangements for occupational pension schemes (accessed 19 October 2026)
- The Pensions Ombudsman : free, independent service for pension complaints (accessed 19 October 2026)
On this topic elsewhere
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Disclaimer
PolicePay.co.uk is an independent reference site. It is not a law firm or a financial adviser, is not regulated by the Solicitors Regulation Authority or authorised by the Financial Conduct Authority, and this page is general information, not legal, financial or pension advice. Every divorce settlement depends on the facts, and pension sharing is decided by agreement or by a court. Figures from our calculators are estimates on stated assumptions: the scheme administrator's cash equivalent and the court order are what count. For decisions about your settlement, speak to a family solicitor and, where the pension is a large part of the money, a pension on divorce expert. Details apply to England and Wales unless stated. Details are as checked on 19 October 2026.