Accountants asked to estimate the volume of errors in remediable pension savings statements currently being rolled out by NHS Pensions say that up to 50% could include incorrect data, based on the statements they have seen so far.
The figure comes from a membership survey, carried out by the Association of Independent Specialist Medical Accountants (AISMA) last week, after errors were identified in the first batch of statements to be sent out.
The statements are an essential tool for NHS pension scheme members and their professional advisers to re-calculate if tax is due to be paid or refunded. The re-calculation is required following the roll-back of pension records as a result of the McCloud age discrimination ruling affecting public service pension schemes.
Almost 90% of AISMA members responding to the survey identified errors on the statements they had seen. Errors include overstated pension growth figures and discrepancies between RPSS and HMRC records on annual allowance tax charges settled by NHS Pensions on behalf of scheme members.
Andy Pow, AISMA board member, said: ‘Many members of the NHS pension scheme haven’t yet received their statements and those who have are struggling to make sense of the numbers. We are concerned that the major discrepancies already identified in pension growth figures will lead doctors and other healthcare professionals to lose trust in the process.’
Mr Pow added that doctors are also being left in the dark about how they should deal with their 2023/24 tax disclosures which are required imminently.
Deborah Wood, AISMA Chairman, said: ‘Doctors and their accountants were already under extreme pressure in terms of meeting the 31 January deadline to re-submit eight years’ worth of tax information to HMRC as part of the McCloud remedy process.
‘AISMA members are concerned about the need to review all remedial pension savings statements and arrange for the correction of errors before the correct tax calculations can be made. The sheer volume of processing required in the short period of time available means it will be virtually impossible for the 31 January deadline to be met.’
AISMA has joined other accountancy and tax organisations, pension advisors and the British Medical Association in calling for an extension to the first deadline of 31 January 2025.
‘Logically it should be aligned with retired members to 31 January 2027,’ said Ms Wood. ‘Practically speaking, however, this may then impact on 2024/25 tax submissions. To avoid kicking the can further down the road we accept that 30 September 2026 may be a compromise position.’