The Department of Health and Social Care is to put forward a new set of proposals to address the problem of pension tax charges faced by GPs and senior NHS doctors for breaching their pensions annual allowance, which has caused many to turn down additional work or take early retirement.
The new rules would allow doctors to set the exact level of their pension accrual at the start of each year and give employers the option to recycle unused contributions back into salaries. The new proposals replace the ‘50:50’ option set out in a consultation in July, now withdrawn.
A survey by the BMA has revealed that 42% of GPs and 30% of consultants had already reduced their working hours over pension tax charges.
The Department of Health and Social Care is to put forward a new set of proposals to address the problem of pension tax charges faced by GPs and senior NHS doctors for breaching their pensions annual allowance, which has caused many to turn down additional work or take early retirement.
The new rules would allow doctors to set the exact level of their pension accrual at the start of each year and give employers the option to recycle unused contributions back into salaries. The new proposals replace the ‘50:50’ option set out in a consultation in July, now withdrawn.
A survey by the BMA has revealed that 42% of GPs and 30% of consultants had already reduced their working hours over pension tax charges.
