TLDR: Some helpful bits, but too litttle, too late with NOTHING for AA/LTA
2/ The consultation is expected to be published later this morning
Heres a snapshot of what it covers (and what it doesnt)
3/ The main areas cover 3 main areas
- Some pension flexibilities around retirement only
- Some changes (not enough) to deal with inflation
- minor access changes to PCNs
4/ (1)
Changes to pensionable retirement - i.e. retiring from 1995 pension and being re-employed in 2015 and still earning 2015 benefits (a big deal - weve been asking for this for years)
5/ Previously if you worked beyond 60 you would burn 95 pension as there are no #lateretirementfactors
Now you can conintue to build 2015 pension whilst drawing some of all of your 1995 benefits (but reducing pensionable pay >10%)
6/ This option doesnt of course take pension taxation away, but it does mean for example a member could partially retire if they reached (the now falling in real terms) LTA and continue saving 2015 pension (still subject to AA and LTA; but at least they crystalised some benefits)
7/ Partial retirement will allow drawing 100% of the benefits in 1995 - important so AA issues will only arise from the other scheme not the interaction of schemes.
8/ The 16 hour rule also removed
9/ (2) Next the bits about inflation - or rather fixing the bits they have already announced ignoring #NegativePIAs
As previusly announced this will be done by moving revaluation dates in 2015 / 1995 GP scheme to 6th April
10/ This does help align revluation to the opening value for #CPIdisconnect, but IGNORES the massive problems with #fixnegativePIAs
11/ The failure to address this will leave members MASSIVLEY overpaying AA charges for non-existent growth in 2023/4 and 2024/5 - we will continue to lobby HM Treasury for this
12/ There will also be some small changes to scheme access to allow PCNs staff to acces the NHS pension scheme
13/ All in all there are some positives here - partial retirement & a fix of *some* of the problems relating to inflation #CPIdisconnect but IGNORING issues of inflation related negative PIAs (a *massive deal*).
14/ But crucially whilst this does help those who are peri-retirement, it does *nothing* for mid career doctors punished by unfair punitive AA and LTA taxes. They will continue to reduce activity / retire early to avoid these charges. Still need #taxunregistered#FixTheFinanceAct
15/ 15/ Read the @bma_pensions comment in the Times - "the proposed changes appear to be too little, too late...doctors will continue to receive sky high & completely unexpected tax bills by continuing to provide care for patients, care they desperately need"
18/ According to @willquince "senior staff will no longer feel forced to retire early, ultimately benefiting patients by ensuring their expertise remains in the NHS for longer so we can continue to deliver world-class healthcare."
19/ I disagree - unless & until @DHSCgovuk@hmtreasury recognise the driver of this is the general annual allowance & rapidly reducing lifetime allowance, I am afraid higher earning NHS staff will continue to reduce activity & retire earlier than they might have #TaxUnregistered
1/ THOUGHT FOR THE DAY: Whilst I'm grateful for the changes to LTA/AA, the AA and the dreaded #taper still remain. And here's your regular reminder why its PARTICULARLY unfair, and stupid, in the NHS (from @BMA_Pensions @TheBMA evidence to DDRB).
Short 🧵pls read & share
2/ We are all in CARE now, so should all be paying generally the same employEE contributions.
But we aren't - and its worst - by a garden mile - in the NHS per this chart showing the ratio of conts from the highest earners : lowest earners in the public sector 👇
3/ So unlike in the private sector where there is no difference in cost for higher vs lower owners other than tax relief, we go through this ridiculously unfair step in the NHS - far worse than anywhere in the public sector - that strips away our higher rate relief
1/ very important and NEW: @nhs_pensions have overnight issues guidance on 23/24 tax year where they have failed to send you a pensions savings statement on time (which was their legal duty)
2/ the bottom line is they expect you ESTIMATE your carry forward and PIA and any charge in the normal timescale ie by Jan 31st 2025 …. Which is going to be extremely difficult …..
3/ after you estimate you will have until Jan 26 to correct your estimation based on the real figures
1/ Well after intense media speculation re: budget (speculation incl. reduction of tax free lump sum to £100k; flat rate relief at 30 or 20%; lifetime allowance re-introduction & pension "flexibility" [i.e. balance between pay & pension] .. speculation can now END....
Pls RT 🧵
2/ Its now time for @RachelReevesMP to deliver her first budget ... I'll be live tweeting anything significant with a focus on #pensions and #pensiontax (if there is indeed anything!)
So keep following! Appologies for any typos/errors read to end for any corrections & docs
3/ So following #PMQs there is a statement that the contents of some of the budget has been made public before the budget and expresses dissapointment that this has happened
1/ Longtime followers may remember this update from 4.5 years ago. Id met the then head of @nhs_pensions and the senior leadership team. They made lots of promises to improve things around Annual Allowance that BADLY needed improvement....
2/ Chief among those promises was to have an end to waiting till October for a PSS. Indeed no more brown envelopes. 85% of people would get their "digital brown envelope" by June (starting in 2020) 👇
3/ And furthermore for those that dont get automatic PSS (then around 85%), 15% would be able to see in this portal, from June 2020 why they DONT have a PSS i.e. you need manual calculations, or they cant issue one as they are awaiting info from employer
1/ ICYMI Ive done a couple of videos 📹 on the tapered annual allowance - and why it could be hugely problematic for higher earners in the NHS *THIS* tax year (24/25)
Its crucial you have an understanding of chart 👇 if you are in affected groups.
Please share 👇/ RT & 👀📹
2/ This was the first of two videos introducing the problem via a real case study
I discuss why its crucial that @wesstreeting @jamesmurray_ldn get an urgent grip of the dreadful tax policies they inherited affecting lower and higher earning consultants