This statement confirms in relation to the NHS in England that the contractual commitments being entered into to make payments to clinicians affected by annual allowance pension tax will be honoured when clinicians retire.
NHS England has set up special arrangements under which certain clinicians who provide services to the NHS and incur annual allowance tax charges as a result of their continued membership of any NHS pension scheme in 2019/20 (the Tax Charge):
- will be able to look to the NHS Pension Scheme to pay those tax charges under the Scheme Pays arrangements
- will receive additional payments in the future to compensate for any reduction in such payments as a result of the payment by NHS Pensions of the Tax Charge under the Scheme Pays rules
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