Have you received the inflationary increase due on your NHS pension?
If you are contributing to the 2015 NHS pension scheme (and have not had a break in pensionable service of 5 years or more) your pension should be revalued every year with inflation. This will be at the CPI rate of inflation plus 1.5%. We have found that some clients have not received their inflationary […]
Will new NHS pension flexibilities be enough?
The outcome of the NHS retirement flexibilities consultation was published in March. From April 2023, doctors in the 1995 scheme will be able to ‘retire and rejoin’ – effectively retire, draw their NHS pension benefits and rejoin the 2015 scheme to accrue further benefits. There is a minimum 24-hour break before rejoining however, the previous […]
McCloud remedy latest: further consultation launched
Another DHSC consultation has been launched to discern how the government plans to implement the McCloud Remedy. This is the plan to alleviate the deemed age discrimination caused by moving some members of the NHS pension to the 2015 scheme. The first consultation last year considered how the legacy pension schemes would close at the […]
Budget 2023: Yearly tax-free pensions savings to increase
The annual allowance, which has had a particularly negative impact on the NHS workforce in recent years, will be increased from £40,000 to £60,000 from April 2023. The tapered version of the allowance which further penalises higher earners depending on income, will see its minimum amount set to £10,000 from the current £4,000. The figure […]
Budget 2023: Dramatic change for lifetime allowance
The chancellor Jeremy Hunt has abolished the lifetime allowance in a bid to stop people ‘pulling out of the workforce for tax reasons’. There had been excited media speculation in the days before the Budget that the lifetime allowance, currently set at £1.073m and due to remain frozen until 2026, would be increased to its […]
Time to request your pensions statement
The annual pensions statements for 2020/21 are now available from the NHS Pensions Agency. If you have not already received yours, you should request it now. This document provides important information to help determine your true pension position and whether you are likely to pay tax charges on your pension savings. The ‘annual allowance’ limits […]
New NHS pension consultation launched
The government has launched yet another pension consultation to discuss significant changes to NHS contributions. This comes as part of the move for all members to begin building benefits in the 2015 scheme from April 2022. The 2015 scheme is based on career average revalued earnings (CARE) unlike the former final-salary schemes of 1995 and […]
Autumn Budget 2021: New tax exemption for NHS pension
The chancellor announced that NHS Pension Scheme members will not have to pay extra tax if they receive an increase in benefits as part of the ‘McCloud’ remedy. The McCloud remedy sets out how and when those deemed to have suffered age discrimination by moving to the 2015 NHS pension scheme will be compensated in […]