Consultation outcome: Proposed changes to NHS pension contributions

The Department of Health and Social Care has published its response to the consultation setting out proposed changes to member contributions to the NHS Pension Scheme.

Commenting on the response, Deborah Wood, chairman of the Association of Independent Specialist Medical Accountants and healthcare services partner at MHA Moore and Smalley, said:

“Postponing the changes to pension contributions until 1 October 2022 will create complexities for practice payroll systems and AISMA’s view is that implementation from April 2023 would be preferable.

“Moving the tiered rate contribution closer to the 9.8% overall cost of funding required for the pension scheme is sensible and will benefit most GPs whose earnings are in the higher bandings. Sensible too is the reduction in due course of the number of tier bands.

“We also welcome the move to basing tiers and contributions on actual pensionable pay, rather than whole time equivalent pay. However, it is disappointing that the opportunity was not taken to also remove the need for annualisation for GPs who are members of the pension scheme.”

“The 2022/23 annual certificate of pensionable profits for both partners and salaried GPs will now need to accommodate a mid-year tiered rate adjustment calculation, adding yet more complexity to the process.”