NHSEI 2019/20 pensions annual allowance charge compensation policy

January 21, 2021

Clinicians who are members of the NHS Pension Scheme and who, as a result of work undertaken in the 2019/20 tax year face a tax charge in respect of the growth of their NHS Pension Scheme benefits above their pension savings annual allowance threshold, will be able to have this charge paid by the NHS pension scheme. Please see the information below:

NHSEI is encouraging clinicians in England who have received a pension savings statement or believe they may be subject to an annual allowance charge to work out if they have a charge to pay, and follow the steps outlined on the NHSEI website to apply for the 2019/20 pension annual allowance charge compensation policy (PAACCS).

To use scheme pays, clinicians must make an application using the scheme pays election (SPE2) form. This must be completed and returned to NHS pensions by the 31 July 2021 or before retirement or age 75, whichever is earlier. Clinicians and their employing authority will also need to complete an application form available on the NHSEI website to confirm their clinical eligibility.