NHS News update April 2011
Contribution Tiers 2011/12
The NHS factsheet setting out the provisional rates for the forthcoming tax year 2011/12 has been published and is available here.
If you are affected by a tier change, ie there has been a change in the level of your pensionable salary due to a job change, promotion, clinical award etc, you will be written to in due course informing you of your new tier for the tax year 2011/12.
Pensions Choice Exercise (PCE)
As you are aware this exercise has commenced and is due to end in March 2012. The statements are being issued in batches; if you have not yet received yours, please do not be concerned as all members of the 1995 section will be given an opportunity to make their choice during the exercise period. However, if you are due to retire in the period prior to March 2012 and have yet to make your choice, you will be still be able to make your choice as part of your retirement process.
Tax Relief limits - changes effective April 2011
A new reduced limit is being introduced with effect from April 2011 on the value by which your pension benefits can accrue year on year before being subject to tax (known as the Annual Allowance Charge). Members of NHS who have been identified as potentially being affected by these new lower limits have been written to separately on this issue. Full details of the changes to the limits are provided here and on the NHS web here
Similarly, we are required to inform you of the NHS Pension Input Period (PIP), the period in which your NHS benefits are measured against the Annual Allowance (AA). The pension input period for the NHS Pension Scheme, as agreed with HMRC, is the pension year, 1 April to 31 March.