Greater flexibility in NHS Pension Scheme accrual rates—an answer to taxpayers’ prayers?

Article summary

Pensions analysis: The Department for Health and Social Care (DHSC) is examining how it can improve the flexibility of senior NHS staff pensions to discourage them from retiring early or refusing work to avoid tax charges following the reduction in the lifetime allowance and the introduction of the tapered annual allowance. Under DHSC’s proposals senior clinicians will be able to set their level of pension accrual each year while remaining within the NHS Pension Scheme (NHSPS). Kelly Beattie, managing associate at Womble Bond Dickinson, discusses the ramifications and effectiveness of the proposals, which she says have wider ramifications for other public sector pension plans and many private sector plans.