NHS pensions – ‘Rollback’ and Remedial Pension Saving Statements for NHS dentists
The background
A legal case ruled that members of public sector pension schemes were ‘age discriminated’ against and as such dentists may have had some 2015 NHS Pension scheme benefits ‘rolled back’ into the 1995 or 2008 NHS pension schemes. ‘Rollback’ has been happening automatically, so you don’t need to take any action on this, other than you may wish to view your accrued pension benefits via your Total Reward Statement. We can assist clients to interpret this statement to help with retirement planning objectives.
One consequence of Rollback may be a change to an NHS dentist’s previous Annual Allowance position. Mostly, this is expected to give rise be a positive outcome.
The consequences for a previous Annual Allowance charge – who is affected?
Those affected are likely to have had an Annual Allowance charge in a previous tax year. This will have been settled with HMRC via your self-assessment tax return or via NHS pensions Scheme Pays. If this sounds familiar, then you may need to recalculate your Annual Allowance position for the years in question.
Remedial Annual Allowance statements and recalculating the Annual Allowance position
It appears that Remedial Statements have been sent out automatically to dentists. However, based on experience if you have not received the statement, we suggest that you request this if you have been previously affected by an annual allowance charge.
If you are in possession of the Remedial Statement, you should ask your adviser to recalculate your Annual Allowance position and you may be due a refund of overpaid tax. Please note there is a possibility that you will be liable for an additional tax charge.
Claiming back costs
Should your adviser or accountant charge you for recalculating the figures you may be able to reclaim this via the NHS Cost Claim Back Scheme.
THE NHS pensions website has a significant amount of information on this topic. Search: NHS Pension Public Service Pensions Remedy.
