Pensions - Articles - Aegon comments on the GAD work with NHS Pension Scheme

 “Potential pension tax charges, in the form of the dreaded tapered annual allowance, have led to some senior clinicians reducing their NHS hours or leaving the NHS early. In the current crisis the NHS needs all the doctors and other medical staff it can get. This has mobilised the government into finding a workable solution for senior clinicians in the NHS Pension Scheme on top of the increases in the thresholds for the tapered annual allowance announced in the March Budget.

 “Introducing more flexibility, such as the option to have a flexible accrual rate in return for a reduced employer contribution appears to be a workable solution. Allowing senior NHS staff to flex the rate at which they build up their pension could reduce the risk of facing a tax bill. However, there will still be some uncertainties, as individuals may not know their earnings until the tax year has ended, which means they still risk receiving a tax bill. Each individual will have their own unique financial circumstances, so if this new flexibility is offered it will be imperative for affected NHS staff to get financial advice.”

 https://www.gov.uk/government/news/helping-develop-an-approach-around-senior-clinicians-pensions