Update on BMA pension calculator
The BMA have 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.
With a growing number of consultants raising concerns over the impact of pension changes and the levels of annual and lifetime allowances, this will be an important step in BMA supporting our members to understand fully the implications to them.
This calculator will also facilitate the ongoing work by the BMA in its efforts to lobby the government to change the rules around calculation of the tax due on annual allowance breaches.
Further details will be released in due course.
‘Will changes in my work pattern impact on my pension and the Annual Allowance?’
- Pension growth depends on the accrual rate of the scheme you contribute to (1995 Section, 2008 Section and 2015 Career Average Revalued Earnings Scheme) and whether you have transitioned to the 2015 CARE scheme and have retained a ‘final salary link’. Where transition members have retained a final salary link 1995 and 2008 section benefits will be calculated with reference to current pay.
- 10 PAs (programmed activities)/sessions is full-time in pension terms and working less than this results in slower service accrual for members of the 1995 and 2008 sections. Members of the 2015 CARE scheme have benefits based on actual pensionable pay and working less than 10 PAs/sessions results in less pension accruing.
- As reducing hours will result in less pension growth (if this takes you below 10 PAs or results in the loss of other additional pensionable payments) it may also affect the calculation of the tapering of the Annual Allowance (depending on your overall taxable income position).
- Benefit: Our dedicated pensions service provides free guidance on your NHS pension and other occupational pension schemes. Call our pensions team on 0300 123 1233.
Overview of pensions
More information on annual allowance and tapering
Consultant pensions survey (England)
Pension rules force consultants to retire early
The 'perfect storm' of pensions rules hitting consultants in Scotland
Consultant terms and conditions of service – Schedule 17: ‘Pension arrangements’ (England & Northern Ireland); Schedule 15: ‘Pension Arrangements’ (Scotland); Amendment Chapter 14: 'Miscellany' (Wales)