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NHSEI 2019/20 Pensions Annual Allowance Charge Compensation Policy

In November 2019, NHS England and NHS Improvement (NHSEI) announced that clinical staff who go over their annual allowance for the 2019/20 tax year and who use Scheme Pays to pay the tax charge can be compensated in retirement for any reduction to their NHS Pension Scheme benefits.

The announcement gave assurance to clinicians that they could undertake any combination of clinical roles for the NHS during the 2019/20 tax year, including additional work relating to the coronavirus response, without suffering any financial loss as a result of the annual allowance taper.

If you are a clinician in England and have received a pension savings statement for the 2019 /20 tax year or think you may have an annual allowance charge in respect of your NHS Pension Scheme benefits, you can find more information about the 2019/20 Pension Annual Allowance Charge Compensation Policy, whether you are eligible and how to apply on the NHSEI website.

To apply, you and your employing authority will need to complete an application form available on the NHSEI website to confirm your clinical eligibility for the scheme.

To use Scheme Pays, you must also 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.

Details of the Welsh application process are being finalised for NHS Wales. We’ll share more information once this is available.