Pensions Scotland

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Voluntary Scheme Pays in Scotland

Members of the NHS Pension Scheme in Scotland who have transitioned to the 2015 Career Average Revalued Earnings Scheme will be able to combine the growth from that scheme with 1995/2008 section growth  in order to assess their eligibility for the use of the ‘scheme pays’ facility.

Mandatory scheme pays is available where growth in one of the schemes exceeds the Standard Annual Allowance.

Voluntary scheme pays is available where growth may be under the Standard Annual Allowance in one or both schemes but when combined exceeds the Standard Annual Allowance.  The voluntary facility applies to the growth which exceeds the Standard Annual Allowance.

The SPPA will now additionally permit the use of the voluntary scheme pays facility where combined growth exceeds an individual’s reduced and tapered Annual Allowance but not the Standard Annual Allowance.

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