Pensions

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Annual allowance

What is the BMA doing about the annual allowance

In March the BMA’s Consultants Committee wrote to the Chancellor of the Exchequer, Philip Hammond, to raise the BMA’s ongoing concerns over the number of doctors and other NHS workers across the UK who are encountering serious difficulties with the current Annual and Lifetime Allowance taxation rules and the impact this is having. The impact is forcing some of our most experience doctors to retire, reduce their workload, abandon leadership positions and stop covering vacancies. This letter adds to the BMA’s repeated efforts to get the government to take notice of what a serious situation this is.

The BMA has also developed slides to further educate our membership on the complexities of NHS pension schemes, especially with regards to the current annual and lifetime allowance taxation rules.

The following slides have been produced to support the BMA’s ongoing work around pensions. These slides are intended to further educate our membership on the complexities of NHS pensions schemes, especially with regards to the current annual allowance and lifetime allowance taxation rules, which are causing problems for consultants throughout the UK. The slides also explain the actions the BMA is taking to resolve this matter for our members.

View the slides for England

View the slides for Scotland

View the slides for Northern Ireland [PDF]

 

BMA letters to the Chancellor and Prime Minister

Our letters to both the Chancellor and the Prime Minister are clear in their warnings to Government that unless action is taken "doctors will be left with no option but to reduce their working hours even further thereby exacerbating an already acute workforce crisis and seriously jeopardising the sustainability of the NHS."

Read the letter to the Chancellor

Read the letter to the Prime Minister

 

BMA guidance

The BMA aims to support its members by ensuring that they are aware of the tax implications of the annual allowance and by giving them the tools to assess the impact of their personal situation. In addition, more than 1,600 doctors have written to their local MP using a BMA tool to outline their own individual circumstances and concerns. You can add your voice to the thousands who have already done so.

Yet our fears over the consequences to the sustainability of the NHS have not been fully appreciated and the solutions presented in our latest letter to the Treasury have gone unanswered. To this end the BMA has published guidance outlining arrangements and possible alternative options for those who are active members of the NHS Pension Scheme and who may become affected by the lifetime allowances in respect of their pension savings in registered pension schemes in the UK.

Read the guidance

 

Pension calculator

The BMA has also entered into an agreement with Dr Tony Goldstone to develop a calculator for BMA members that covers all pension schemes and all branches of practice across all four nations. The BMA will support this development with additional input from specialist tax advisors, actuaries and IT support to deliver a comprehensive tool to support members in calculating their pension growth and annual allowance charges.

In the first instance the calculator will be launched for consultants on the 1995 and 2015 pension schemes. We will be developing the calculator further to cover those consultants on the 2008 contracts and other branches of practice. 

Further details will be released in due course.

 

Annual allowance and lifetime allowance taxation rules

The following slides have been produced to support the BMA’s ongoing work around pensions. These slides are intended to further educate our membership on the complexities of NHS pensions schemes, especially with regards to the current annual allowance and lifetime allowance taxation rules, which are causing problems for consultants throughout the UK. The slides also explain the actions the BMA is taking to resolve this matter for our members.

These slides are part of a suite of work that the BMA consultants committee has been leading on with respect to pensions and the BMA's Pension Taxation Calculator will follow. Initially this will be for consultants on the 1995/2015 schemes only. However, amended versions for those on the 2008 pension scheme and other branches of practice will follow in due course, along with guidance on how to use them.

 

For consultants in England

This video covers pensionable and non-pensionable pay, an overview of the NHS pension schemes, retirement, death in service, ill-health retirement and pensions taxation.

 

This video covers the background to the problem, why the annual allowance is a problem for consultants, the consequences and what the BMA is doing.

 

 

 

For consultants in Scotland

This video covers contribution rates, the sections, retirement and returning to work and dependants' benefits.

 

This video covers the background to the problem, why the annual allowance is a problem for consultants, the consequences and what the BMA is doing.

 

Consultants in Scotland FAQS

Read our FAQs on changing your programmed activities (PA) commitments for consultants in Scotland.

Pensions survey

BMA Scotland is asking members to share their experiences of the impact of pension tax charges – the survey is still open, but you can read the interim results online.