Pension delays leave thousands of retirees missing out on £10,000 payments

Joe Sledge
Fri, 24 Apr 2026 19:26:34 +0000

Tens of thousands of retired teachers enrolled in the Teachers’ Pension Scheme could be missing out on sums exceeding £10,000, it has been revealed.

Many have faced prolonged waits to receive money owed. Others have run into further complications when trying to claim benefits on behalf of deceased relatives.

The disruption stems from a 2018 High Court judgment which found that changes to public sector pensions had been discriminatory on the basis of age, according to MoneySavingExpert.

Since then, many pensioners have been left in limbo, waiting for backdated payments that could run into the thousands under the remedial measures introduced after the ruling.

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The issue dates back to reforms in 2014 and 2015, when the Government moved most public sector workers, including teachers, from final salary schemes to career average arrangements.

Under the old system, retirement benefits were based on earnings towards the end of a career. The newer model instead calculates entitlements using average earnings across an individual’s working life.

Workers who were within 10 years of retirement at the time were allowed to remain in the final salary schemes. Younger employees were transferred to the new arrangements from 2015.

This age-based distinction was challenged in the courts, with claimants arguing it was unfair. The High Court agreed in 2018.

Following the ruling, the Government moved all affected employees onto career average schemes by March 2022. However, differences remained for the period between 2015 and 2022.

To resolve this, the Government introduced the McCloud remedy, designed to correct disparities in how pension benefits were calculated during those seven years.

The remedy gives eligible members a choice: have their benefits for that period calculated under final salary rules or under career average rules.

To support this, pension providers must issue each member with a personalised remediable service statement comparing outcomes under both systems.

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Some may also need to repay money if they choose an option that results in a lower entitlement.

The Government had initially set a deadline of early 2025 to issue all statements.

That target has since slipped, adding to uncertainty for affected members.

A spokesperson for the Department for Education said: “We understand and recognise the disruption that delays have caused for some teachers.

"The Transitional Protection (McCloud) remedy is one of the most significant changes to public service pensions in recent years and delivery is being phased to ensure accuracy and fairness for members due to a complex process.”

Capita, which administers the scheme on behalf of the Department for Education, said rising complexity had contributed to delays.

A spokesman for the company said: “The scheme has experienced a sustained increase in complexity and volumes in recent years, including as a result of regulatory changes, which has contributed to delays in some cases.”

They added that it continues to administer the scheme in line with its regulations.