NHS pension scheme members are entitled to have access to accurate and up to date information about their pension, without this, it is impossible for them to plan for retirement or assess their pension tax position. The significant delays in pension statements being issued and pension awards being paid are having a detrimental impact on our members lives. We are therefore in the process of gaining legal advice on the various maladministration issues across the four nations, exploring all legal avenues that may be available to rectify the detrimental impact experienced by members.
NHS Business Services Authority - England & Wales
We are extremely concerned about the NHS Business Service Authority’s (NHSBSA) performance in managing the NHS Pensions Scheme. We are meeting with them on a fortnightly basis to demand urgent action to improve things, as well as offering our expertise to help them find solutions. There are several major issues causing problems to our members:
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McCloud delays
Despite the statutory deadline of October 2024, thousands of members still have not received Remedial Pension Saving Statements (RPSS) and there are delays with Pension Savings Statements (PSS). Without these statements members have no knowledge of their pension saving position and are unable to make informed decisions to manage their pension growth to mitigate potential tax impacts. -
Total Reward Statement (TRS)
The updated TRS for 2024/25 should have been made available to members at the end of August. However, many hundreds of thousands of members do not have access to an updated TRS. If the current TRS is not available, the system also removes the previous years version, and so some members are left viewing a blank screen. The provision of an annual benefit statement (the TRS) is the most basic of statutory requirements. -
Payment of pension to those retiring
NHS BSA should be paying first pension payments within 30 calendar days from the date of a member’s retirement. However, in some cases, first awards have been delayed and are being paid significantly later than this target. This can potentially result in significant financial hardship for members if they have retired and then do not receive their expected pension payment. NHS BSA are prioritising this, but unfortunately due to their limited resources, this has meant resource being reallocated from other workstreams such as McCloud and TRS updates.
We have escalated our serious concerns to the Department of Health & Social Care (DHSC) and highlighted the issues in meetings with MPs. DHSC reassure us that those in senior positions are aware of the severity of the situation and are working with NHS BSA to address it. NHS BSA have also told us, that following our advice, they have reported themselves to the Pensions Regulator.
One of the issues seems to be that NHS BSA does not have sufficient resource to manage the NHS Pension Scheme, and they are also reliant on multiple outdated electronic systems. Higher earners in the NHS have different needs when it comes to pension administration and often interact with the pension scheme more often to know their pension saving position. We have been asking for reassurances that NHS BSA have the dedicated resource to meet these specific needs. We believe that it is essential that DHSC & NHS BSA urgently address the core underlying issues to deliver an improved administration service for the long term.
Scottish Public Pension Agency update - Scotland
Following the very comprehensive response to our recent pensions survey in Scotland, elected members are meeting with the SPPA senior leadership team on a monthly basis. The McCloud Remedy communications sub-group has also restarted, with an aim of improving communication for members.
SPPA have made progress with issuance of RPSSs and Annual Benefit Statement-Remedial Service Statements (ABS-RSS), however there are still significant delays for some members. A new online portal called Engage has now been launched for statement issuance going forward, with ABS-RSSs now available for many members (albeit excluding some categories such as those with transfers in or added years – see the SPPA website for a full list).
For members who have not yet received a RPSS, but are due one, SPPA have confirmed their 2024/25 service will also be included in this statement. For those who have already received one, this information will be provided via a separate business as usual PSS.
HSC Pension Service update - Northern Ireland
Members in Northern Ireland reported delays to the processing of partial retirement applications by HSC. It was revealed that there was a backlog of over 700 partial retirement applications and they were processing just 22 per month – this meant a potential wait of two and a half years.
The Chair of BMA Northern Ireland Consultants Committee wrote to the Permanent Secretary at the Department of Health (DoH) to raise concerns and demand urgent action. The DoH provided assurance that additional funding has now been agreed, enabling HSC to recruit more staff and deal with the backlog of current applications. We will be monitoring this situation and will update members with any further developments.