Employers are reminded that a final pay control charge applies where a NHS Pension Scheme Officer or Practice Staff member with 1995 Section membership (including 1995/2015 transition members) has a pensionable pay increase which exceeds an allowable amount resulting in disproportionate NHS pension benefits.
The allowable amount is the amount that pensionable pay can increase by in comparison to previous years before a final pay control charge applies. The charge is levied on the relevant employer. Where the member is a non-GP Provider the charge is levied on the surgery.
A final pay control charge applies to all types of NHS pension benefits except those in respect of the death of a member. The charge also applies where the pensionable pay used to calculate a transfer out exceeds the allowable amount.
Where a charge is applicable the employer must pay it straightaway otherwise they are subject to interest and administration charges.
There is factsheet available on the NHSBSA’s website providing more information.
Individuals who are solely members of the 2008 Section or the 2015 Scheme are not subject to final pay controls.