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<p>The Department recognises that the tapered annual allowance may contribute to decisions
from National Health Service staff to retire early or limit their NHS commitments.
We are listening carefully to concerns raised by senior doctors and NHS employers
about the impact of the tapered annual allowance.</p><p> </p><p>In listening to concerns,
the Department has sought to make available to NHS Pension Scheme members all possible
flexibility under Her Majesty’s Revenue and Customs legislation and the current fiscal
framework for public sector pension schemes. The scope of the voluntary ‘Scheme Pays’
facility, implemented by the NHS Pension Scheme to allow scheme members to pay annual
allowance charges from the value of their pension benefits rather than upfront, has
been extended to cover the payment of tax charges from breaches of the tapered annual
allowance. The Government keeps the impact of public sector pay and pensions policies
under constant review.</p><p> </p><p>The 2015 NHS Pension Scheme is a generous and
valuable part of staff reward packages and remains one of the best schemes available.
As it is a career average pension scheme it delivers a fairer pension to all members
compared with the previous final salary pension scheme that favoured those higher
earners with higher career pay progression. Its introduction ensures that NHS staff
receive financial security in retirement, and that the scheme is affordable to the
taxpayer.</p>
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