Armed Forces, Police & Firefighters' Pensions: Annual Allowance & McCloud

The three schemes side by side

All three are career-average schemes introduced in 2015, and all three moved their members fully onto the 2015 scheme from 1 April 2022.

Scheme	2015 accrual rate	Active revaluation	Normal Pension Age	Who administers
Armed Forces (AFPS 15)	1/47 (non-contributory, 0% member contribution)	Average Weekly Earnings (an earnings index, not CPI)	60	Veterans UK (Defence Business Services, MOD)
Police (2015)	1/55.3	CPI plus 1.25% while active	60 (earliest 55, reduced)	Each force's pension authority (Home Office sets policy)
Firefighters (2015, England)	1/59.7 (about 1.675%)	Average Weekly Earnings (an earnings index)	60 (earliest 55, reduced)	Each Fire and Rescue Authority

Sources:GOV.UK: armed forces pensions GOV.UK: police pension schemes Firefighters' Pensions GOV.UK: public service pension remedy

The McCloud remedy across the uniformed schemes

All three schemes moved members to the 2015 scheme from 1 April 2022. For the years before that, the McCloud remedy uses a Deferred Choice Underpin.

How the Deferred Choice Underpin works:

•For 1 April 2015 to 31 March 2022, members were rolled back into their legacy scheme.

•You then choose legacy benefits or 2015 benefits for that period, at retirement, when the scheme can show you both figures.

•The legacy schemes are the Armed Forces AFPS 75 or AFPS 05, the Police PPS 1987 or NPPS 2006, and the Firefighters FPS 1992 or NFPS 2006.

For firefighters, this is the Sargeant half of the combined McCloud and Sargeant judgment. The choice can change your Annual Allowance position for the remedy years, so a past pension-tax charge may need revisiting.

Source: https://www.gov.uk/government/collections/how-the-public-service-pension-remedy-affects-your-pension

Why a promotion can trigger an Annual Allowance charge

Across the uniformed schemes, a promotion to senior rank or officer is the classic trigger for an unexpected pension-tax bill.

Why a promotion matters:

•A step up in rank raises your pensionable pay, which raises how fast your promised pension grows.

•That growth is valued at 16 times the yearly increase, so one large rise can cross the £60,000 Annual Allowance.

•The scheme may not warn you, because it does not always know your other income or pensions.

Also worth watching: overtime and allowances can raise your income and taper your allowance, even when your basic pension build looks steady.

Source: https://www.gov.uk/guidance/pension-schemes-work-out-your-tapered-annual-allowance

When professional fees can be reimbursed

Each scheme has its own McCloud remedy route. These are discretionary and have no set cap; your pack flags what applies to you and the deadline.

Armed Forces

The Armed Forces remedy compensates direct financial loss, including professional fees where expert advice was genuinely needed.

•Decided case by case, with no published cap. Itemised receipts required.
•Claimed through the MoD remedy compensation form, normally after your remedy statement.

Police

For complex remedy cases, your force can reimburse accountancy and financial-adviser fees.

•Decided case by case by your force, with no set cap, against actual documented cost.
•Apply within about six months of your remedy election, and seek pre-authorisation where you can.

Firefighters

Each Fire and Rescue Authority can reimburse reasonable accountancy and adviser fees arising from the remedy.

•Decided case by case, with no set cap, reasonable and proportionate to the loss.
•Apply around six months from your remedy election. Any capped figures you see online are Scotland’s separate scheme, not England’s.

Related guides

These guides cover the questions that usually come up next. They are written with NHS examples, but the Annual Allowance and McCloud rules they explain apply right across the public sector.

Annual Allowance

The £60,000 limit, the 16x valuation, and the taper explained.

Carry Forward

Use unused allowance from earlier years to reduce a charge.

McCloud Remedy

How the remedy period works and what your statement will show.

Illustrative, and independent

This guide compares three separate schemes and their shared McCloud framing; your own position depends on your service, income and scheme rules. The reclaim routes shown are discretionary and time-limited. This guide is educational and is not personal advice. Remedy is not affiliated with the MOD or Veterans UK, any police force or Fire and Rescue Authority, or HMRC.