Today we have launched the NHS Pension Scheme annual allowance and tax ready reckoner.
The ready reckoner has been developed to educate members of the NHS Pension Scheme on pensions tax and the value of scheme membership. It is designed to provide members of the NHS Pension Scheme with:
- a broad insight into their annual allowance position
- an indication as to whether or not the tapered annual allowance may apply to their circumstances
- an estimated breakdown of the total annual cost of scheme membership
- an estimate as to how much their annual NHS Pension is projected to increase by over the next year.
There is guidance for employers on how to use the ready reckoner and how to support staff as well as a checklist for staff which sets out all the information you need to have when using the tool.
We are running a webinar on 22 October where we will give a demonstration on how to use the ready reckoner and hold a Q&A session. The webinar is open to NHS HR professionals and independent financial advisors. Book your space.
The ready reckoner was developed with First Actuarial, the independent advisers to the Scheme Advisory Board (SAB) for the NHS Pension Scheme and commissioned by NHS Employers.
A spokesperson for First Actuarial said: “The NHS Pension Scheme is a key part of the total reward package for the NHS workforce and provides great value for money for much of its membership. Our research into the impact of pensions tax in the NHS showed that the annual allowance was a material concern for some members. Pensions can be quite difficult to understand at the best of times and the annual allowance brings further complexity into the mix.
“With this as background, we were delighted to work with NHS Employers to design and build a ‘ready reckoner’ to raise awareness of this complicated and sensitive issue. The aim of this tool is to provide scheme members with estimates of the cost of membership, pension growth and their annual allowance position for the 2020/21 tax year. In many cases, this will highlight the value of membership and, for some, it will indicate the need for further investigation and possibly professional advice.”
Access the ready reckoner, guidance and checklist.