01 / 7 / 2014 8.19am
Following the consultation on draft NHS Pension Scheme (Amendment No.2) Regulations 2014, the Government published its response on 27 June 2014.
The following changes will be implemented:
- proposed new pay bands for scheme year 1 April 2014 to 31 March 2015 will be enforced as a consequence of the 1 per cent increase to pay effective from 1 April 2014 to avoid any unintended negative affect on members.
- the new employer charge for excessive pay rises near retirement will no longer apply to situations concerning a salary sacrifice arrangement taken out before 1 April 2014. Read more about the new employer charge and how it may affect your organisation.
- tax legislation enabling 'Individual Protection 2014' will not be in place before the draft NHS Pension Scheme amending regulations must be laid before Parliament. Accordingly, the Department of Heath has confirmed its intention to make the changes later this year once the relevant tax legislation has received Royal Assent.
You can view and download the Government's response to the consultation.
Read more about both open and closed consultations affecting the pension scheme.