The health secretary has issued a statement confirming arrangements announced in November for NHS England to compensate clinicians for any reduction in pension benefits arising from the use of ‘scheme pays’ to settle an annual allowance tax charge for 2019/20.
The arrangement will involve employers making binding contractual commitments to every affected NHS clinician, providing for payment to be made when the clinician takes their pension, at which point the employer (or its successor) will be liable for the payment. NHS England has undertaken to provide funding in respect of those liabilities as the payments are made.
Should the NHS trust or foundation trust employing the clinician cease to exist, statutory provisions are in place to ensure its liabilities, including commitments to staff, would be transferred to one or more existing NHS bodies, or the secretary of state.
The statement closes by saying that ‘clinicians are therefore now immediately able to take on additional shifts or sessions without worrying about an annual allowance charge on their pensions’.
The health secretary has issued a statement confirming arrangements announced in November for NHS England to compensate clinicians for any reduction in pension benefits arising from the use of ‘scheme pays’ to settle an annual allowance tax charge for 2019/20.
The arrangement will involve employers making binding contractual commitments to every affected NHS clinician, providing for payment to be made when the clinician takes their pension, at which point the employer (or its successor) will be liable for the payment. NHS England has undertaken to provide funding in respect of those liabilities as the payments are made.
Should the NHS trust or foundation trust employing the clinician cease to exist, statutory provisions are in place to ensure its liabilities, including commitments to staff, would be transferred to one or more existing NHS bodies, or the secretary of state.
The statement closes by saying that ‘clinicians are therefore now immediately able to take on additional shifts or sessions without worrying about an annual allowance charge on their pensions’.
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