New NHS Wales commitment means clinicians exceeding their NHS annual pension allowance will no longer be out of pocket.
Clinicians who exceed their NHS annual pension allowance will no longer be out of pocket thanks to a commitment by NHS Wales’ to pay them a corresponding amount on retirement. This means that clinicians are fully compensated for the effect of the Scheme Pays deduction. The Welsh Government funded provision also means that employers will not incur extra costs.
Professor Andrew Goddard, RCP President said:‘This important step by the NHS in Wales means that clinicians who are members of the NHS pension scheme are able to take on additional shifts or sessions without worrying about the immediate impact of an annual allowance charge on their pension.‘The RCP welcomes these efforts to reduce the negative impact of the pensions tax on the delivery of NHS services during the tax year 2019/20.‘We are also aware that the Welsh Government has been lobbying the UK Government for a longer term solution and we support these efforts to make sure that NHS pensions are protected across the UK.’
Dr Olwen Williams, RCP Vice President for Wales said:‘RCP Cymru welcomes NHS Wales’ decision to protect clinicians who exceed their NHS pension annual allowance in this financial year.‘The NHS Pension Scheme continues to be one of the most comprehensive and generous schemes within the UK. It is a key element of the overall reward package for staff and can be a valuable tool for recruitment and retention.’