The government has announced a number of key developments in relation to the NHS Pension Scheme and taxation policy.
What has been announced
- Consultation on scheme flexibilities - the government will publish a new consultation proposing wide-ranging national flexibilities to the NHS Pension Scheme for senior clinicians. This will replace the consultation released on 22 July 2019. The new consultation will seek views on flexibilities that would allow staff to set the exact level of pension accrual at the start of each year, for example, 30 per cent contributions for a 30 per cent accrual rate, or any other percentage (in 10 per cent increments) depending on their financial situation. We await the new consultation and will engage with employers to inform our response. We will update our pension consultation page when the new consultation is published.
- Tapered annual allowance review - HM Treasury has committed to reviewing how the annual allowance taper operates to support the delivery of public services such as the NHS. We will represent the views of employers in this review.
- Guidance - in addition to national pension flexibilities, guidance will be issued to employers setting out how existing discretionary flexibilities could be used to maintain the value of clinicians' total reward package.
- Access to financial advice - the Department of Health and Social Care has committed to working with us and the British Medical Association to give clinicians access to support to understand the scheme, how the changes will work and to help them make informed decisions. This will be available to senior doctors from this current tax year.
Resources for employers
We have a wide range of pension tax resources available on our pension resource library.
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