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<p>The Secretary of State for Defence and Chancellor of the Exchequer have not yet
discussed this particular issue. However, given concerns expressed by Defence Medical
Services personnel and the well-publicised discussions in the NHS and the Department
of Health and Social Care, the Ministry of Defence has consulted internally on pension
taxation, including the issue of tapering.</p><p>We recognise the current situation
with pension taxation (including tapered annual allowance) is a risk to retention
and are monitoring any associated increase in the outflow of personnel. To date, monitoring
suggests no apparent increase in the voluntary outflow of Medical Officers, but we
accept this might change in the future.</p>
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