Proposal For Employer Levy On NHS Pension Scheme
The Department of Health intends to introduce an NHS Pension Scheme administration levy from 1st April 2017. Currently these costs are met by the Department of Health but the proposal is for the employers that participate in the scheme to meet the costs going forward.
The proposal is that the fee is collected as part of the employer's contribution based on doctors' pensionable salary. The total cost is estimated at £35m a year which roughly equates to 0.08% of pensionable earnings per member of the Scheme. Therefore, if the proposal goes ahead, doctors' employer contributions would rise from 14.3% of pensionable salary/earnings to 14.38%.
It is proposed that the new levy would fund all aspects of NHS Pension Scheme administration activity including:
- NHS Pension Scheme administration services; for example calculation and payment of benefits, retirement estimates, total rewards statements
- A new website that will offer self-service for employers and doctors to model retirement outcomes and offer transactional services
- Actuarial and legal advice - for example for scheme valuations, rules interpretation and policy development
- Statutory obligations that fall on the Scheme administrator
A new enhanced website would certainly be welcomed for anyone who has attempted to apply for a NHS Pension projection. We will keep you informed of progress.
In the meantime, if you would lilke a general NHS Pension review of your benefits and whether you are maximising what you are entitled to then please do get in touch on email@example.com or telephone the office on 0117 9665699.