Association responds to latest announcements on NHS pensions
As the Association has previously commented, the current NHS Pension rules are leading to many doctors reducing their working hours or retiring early to avoid additional tax bills.
The latest proposal from the Department of Health - a 50:50 option which would allow clinicians to halve their pension contributions in exchange for halving the rate of pension growth – does not address the fundamental problem, which is the annual allowance taper. The 50:50 option will just lead to doctors seeing unacceptable taxation of their pension growth by a different method and is simply replacing one means of reducing the final pension 'pot' with another.
The 50:50 option will just lead to doctors seeing unacceptable taxation of their pension growth by a different method
We understand that the Government will be consulting on this issue and will be following this process closely.