Making Sense of the NHS Pension Remedy: Do I Need an Advisor?

The government has confirmed that compensation will be available where an NHS Scheme member (GP, Consultant, or other NHS member) has suffered “financial loss” under the NHS Cost Claim Back Scheme. Two specific amounts will be payable:

1. If you need professional help in resubmitting annual allowance tax calculations over the remedy period (1 April 2015 to 31 March 2022) then the scheme will provide reimbursement of up to £1,000 (including VAT) to cover professional advisor costs incurred. These fees will need to be paid upfront by you first, then claimed back from the scheme afterward.
2. If you require professional advice in making a choice exercise, then reimbursement of up to £500 (including VAT) is available for any professional advisor fees. Do note though that a choice is only made at retirement between whether you want this period to remain in the legacy schemes (1995 or 2008 NHS Pension Scheme) or move it back to the 2015 Scheme.

In addition, you may be able to claim reimbursement for advisor costs if:

• You previously paid for advice about the move to the 2015 Scheme which is no longer valid due to the rollback.
• You need additional advice due to the complexity of the remedy changes.
• You have incurred other direct financial losses related to the changes.

So, when might you need an advisor? Below are some scenarios, though they may not cover every situation given the intricacy of the NHS Pension Scheme:

Scenario 1:

I have never had an annual allowance charge and have not been issued a remedial pension statement.

You are unlikely to need to make a tax submission. It may not impact you so you may not need an advisor yet.

Scenario 2:

I have had annual allowance pension tax charges and am still working.

You will most likely need to file a tax reclaim. Contact us for assistance.

Scenario 3:

I have had annual allowance charges but have already retired.

You will need to consider a choice decision at the point of retirement. Contact us as we can recommend an independent financial advisor.

Scenario 4:

I have had annual allowance charges but opted out of the scheme for part of the period.

You will need significant help navigating this complexity. Contact us and we can refer you to an advisor.

Scenario 5:

I received a remedial pension statement but never had to make a prior declaration.

You will need help assessing the tax implications. Get in touch with us.

Scenario 6:

I used to make additional contributions but stopped due to the 2015 scheme annual allowance impact.

If you need help re-evaluating contributions, contact us and we can recommend an advisor.

For more information, please contact Matthew Watson at matthew.watson@ballardsllp.com

Disclaimer. This article has been prepared for information purposes only. Formal professional advice is strongly recommended before making decisions on the topics discussed in this release. No responsibility for any loss to any person acting, or not acting, as a result of this release can be accepted by us, or any person affiliated with us.