It is a key element of the overall reward package for staff and can be a valuable tool for recruitment and retention.
Information for individual members of the NHS Pension scheme
If you are a member of the NHS Pension Scheme, you can find details of the scheme on the NHS Pensions website.
Changes to the NHS Pension Scheme Pension Tiers from 1st October 2022
Members of the NHS Pension Scheme pay a percentage of their pensionable pay to the scheme each month, known as a contribution rate. Changes to members' contribution rates will be made from 1 October 2022.
The changes will apply to all members of the NHS Pension Scheme and may impact on the amount that members pay into the scheme each month.
A pension tier calculator has been developed by payroll colleagues to support scheme members in identifying their contribution tier.
A detailed briefing document on the changes can be found here.
Pensions tax annual allowance – Scheme Pays arrangements 2019/20
Welsh Government took action to support circumstances where pensions tax rules were impacting upon staff who wanted to help their patients by working additional hours and determined that:
- Clinicians who are members of the NHS Pension Scheme and who as a result of work undertaken in the tax year (2019/20) face a tax charge in respect of the growth of their NHS pension benefits above their pension savings annual allowance threshold are able to have this charge paid by the NHS Pension Scheme (by completing and returning a ‘Scheme Pays’ form before 31 July 2021) meaning that they don’t have to worry about paying the charge now out of their own pocket.
- Their Health Board or NHS Trust, as their employer, will make a contractually binding commitment to pay them a corresponding amount on retirement, ensuring that they are fully compensated in retirement for the effect of the 2019/20 Scheme Pays deduction on their income from the NHS Pension Scheme in retirement.
This scheme will be implemented with no net cost to Health Board or Trusts.
Clinicians were therefore able to take on additional shifts or sessions without worrying about an annual allowance charge on their pension for 2019/20.
Employers should actively promote this development to affected staff.
Scheme Pays arrangements 2019/20 - Pension Annual Allowance Charge Policy (Wales) - position as at 21/4/2021
Officials have confirmed the scheme pays arrangements which will be administered on WG’s behalf by the NHS Business Services Authority (NHSBSA).
The scheme is now open and individuals will need to make an application to the scheme. The scheme will remain open to receive applications until 31st March 2022.
- The 2019/20 Pension Annual Allowance Charge Policy (Wales) - factsheet for secondary care clinicians, dentists or clinical academics
- The 2019/20 Pension Annual Allowance Charge Policy (Wales) – factsheet for GP partners, salaried GPs or self-employed GP locums
Scheme Pays election
Please note however, that in order to be eligible for the compensation scheme, individuals must use Scheme Pays to pay the tax charge.
To apply for Scheme Pays, affected individuals will need to complete the separate Scheme Pays election form (SPE2) for 2019/20 (if they have not already done so) and send to the NHSBSA by 31 July 2021. The SPE2 form is available from the NHSBSA.
Individuals do not need to wait for compensation scheme applications to be processed. A Scheme Pays election can be sent to the NHSBSA now, so it will already be entered on the pension record for when the application for the compensation scheme itself is submitted from April 2021.
Annual Allowance charge documentation – April 2021
- Annual Allowance Application form (Wales)
- Ffurflen Gais Cynllun Iawndal Tâl Lwfans Blynyddol (Cymru) 2019/20
- FAQs for employers of eligible clinicians
- Cwestiynau Cyffredin ar gyfer cyflogwyr clinigwyr cymwys
- FAQs for applicants
- Cwestiynau Cyffredin ar gyfer ymgeiswyr
Guidance – April 2021
- Letter from Andrew Goodall to Health Boards and NHS Trusts with clinical staff impacted by annual allowance pensions tax during 2019/20
- Template NHS employer letter to in-scope employees
- Letter from Andrew Goodall to professional bodies regarding pension tax arrangements in 2019/20
Frequently asked questions
Please note these will be updated based on feedback from both staff and employers.
- Frequently asked questions for staff. Last updated: 19 December 2019
- Frequently asked questions for employers. Last updated: 19 December 2019
Pension tax guidance for employers
If you would like more information please take a look at our guidance on local measures to support staff and service delivery.
Cynllun Pensiwn y GIG
Mae Cynllun Pensiwn y GIG yn parhau i fod yn un o’r cynlluniau mwyaf cynhwysfawr a hael o fewn y DU. Mae’n elfen allweddol o’r pecyn taliadau cyffredinol i staff a gall fod yn offeryn gwerthfawr ar gyfer recriwtio a chadw staff.
Gwybodaeth i aelodau unigol o gynllun Pensiwn y GIG
Os ydych yn aelod o Gynllun Pensiwn y GIG, cewch fanylion am y cynllun ar wefan Pensiynau’r GIG.
Arweiniad treth penswin i cyflogwyr
Mae fwy o wybodaeth ar gael ar ein canllawiau ar fesurau lleol i gefnogi staff a darparu gwasanaethau yn ystod blwyddyn ariannol 2019/20