NHS: Pensions

(asked on 3rd April 2019) - View Source

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what recent assessment he has made of the cumulative effect on NHS (a) staff and (b) patients of the (i) reduction in annual allowance for pension growth, (ii) introduction of the tapering of the annual allowance and (iii) introduction of the 2015 NHS pension scheme.


Answered by
Stephen Hammond Portrait
Stephen Hammond
This question was answered on 10th April 2019

The Department recognises that the tapered annual allowance may contribute to decisions from National Health Service staff to retire early or limit their NHS commitments. We are listening carefully to concerns raised by senior doctors and NHS employers about the impact of the tapered annual allowance.

In listening to concerns, the Department has sought to make available to NHS Pension Scheme members all possible flexibility under Her Majesty’s Revenue and Customs legislation and the current fiscal framework for public sector pension schemes. The scope of the voluntary ‘Scheme Pays’ facility, implemented by the NHS Pension Scheme to allow scheme members to pay annual allowance charges from the value of their pension benefits rather than upfront, has been extended to cover the payment of tax charges from breaches of the tapered annual allowance. The Government keeps the impact of public sector pay and pensions policies under constant review.

The 2015 NHS Pension Scheme is a generous and valuable part of staff reward packages and remains one of the best schemes available. As it is a career average pension scheme it delivers a fairer pension to all members compared with the previous final salary pension scheme that favoured those higher earners with higher career pay progression. Its introduction ensures that NHS staff receive financial security in retirement, and that the scheme is affordable to the taxpayer.

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