Senior clinicians' pensions consultation

The government has launched a consultation on proposals to give senior NHS doctors and nurses access to more flexible pensions.

The government has launched a consultation on proposals to give senior NHS doctors and nurses access to more flexible pensions. The proposals aim to offer senior clinicians more control over their pensions growth.

The consultation follows reports that senior NHS clinicians pension tax charges are making them retire early or change their working habits. The Department of Health and Social Care estimates that a third of consultants and GPs may be turning down extra shifts because of how the NHS Pension Scheme interacts with the wider pension tax rules.

The new proposals are designed to allow those affected to have freedom to individually control how much their pension fund grows, allowing them to maximise the amount they can save without facing significant pension tax bills having breached limits on tax relief.

The new proposals include:

  • a 'flexible accrual' option where scheme members can choose an accrual level in 10% increments
  • the option to 'fine tune' pension growth towards the end of the scheme year, when total earnings are clearer.

The consultation closes on 1 November 2019.

Internet link: GOV.UK news

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