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<p>The 2015 NHS Pension Scheme is a generous and valuable part of staff reward packages
and remains one of the best schemes available. Its introduction ensures that National
Health Service staff receive financial security in retirement, and that the scheme
is affordable to the taxpayer.</p><p>The Government recognises that NHS doctors have
raised concerns about pension tax charges being a factor in their decisions to retire
early or limit their NHS commitments.</p><p>We are listening to concerns raised that
the tapered annual allowance is affecting the retention of doctors in the NHS. The
Government is prepared to take action and will bring forward a public consultation
on targeted proposals to make NHS pensions more flexible for senior clinicians by
allowing them a 50% reduction in pension contributions for half the pension accrual.</p><p>The
British Medical Association’s view this proposal as a step in the right direction.
The Department will listen carefully during consultation to reach a final proposition
that works for both staff and taxpayers. The consultation gives an opportunity for
groups and individuals to put forward their views.</p><p>Additionally, 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>
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