Doctors applying for Fixed Protection 2016 (to protect against the reduction in the Lifetime Allowance for pensions from £1.25 million to £1 million from 6 April 2016) should be aware that the protection is lost if further pension benefits are accrued. This means, for instance, if contributions are made to a personal pension, or active membership continues in a work pension scheme.
With this in mind, doctors intending to opt out of the NHS Pension Scheme should note that an election to opt out takes effect from the first of the month following the month in which the notice is given. To opt out in time for April, the deadline is therefore 31 March 2016.
As planning around the Lifetime Allowance is complex, we recommend taking advice especially before making decisions that affect your employment and your pension. Please contact Richard Higgs, Chartered Financial Planner on 0177 966 5699 or firstname.lastname@example.org.