29 August 2022
If you are covering the government’s consultation on extending changes to the NHS pension scheme so retired staff who have returned to the frontline can continue to receive pension benefits, please see the following comment from Graham Crossley, NHS pensions expert at Quilter:
“It is pleasing to see the government consult on tackling the ongoing issue of abatement, which allows recently retired NHS staff to return to work without suffering a penalty on their pension. However, the proposal to extend the suspension of the abatement rules to 31 March 2023 does not go far enough.
“Another short-term extension only leads to worry and uncertainty for NHS staff. Government needs to see sense and permanently end the abatement rules which will lead to more staff being retained within the NHS, more income tax receipts for government, and might even encourage other staff to return from retirement to help tackle the backlog.
Figures obtained by Quilter through a Freedom of Information request in February 2022 revealed that over 7,470 doctors and nurses could be at risk of a financial penalty on their pension once the Coronavirus Act powers expire and could therefore leave the health service as a result.
“The NHS is facing a number of headwinds, but they are compounded by issues surrounding NHS pensions. This results in healthcare workers suffering penalties on their pensions or not being given adequate time to file complicated pension tax paperwork when they have other things front of mind like helping the health service to get back on its feet.”
Background – abatement
- Abatement is the process that restricts the pension in payment for certain members who retire and return to work before 60.
- Abatement was suspended to encourage experienced workers with Special Class or Mental Health Officer status to return to work to help in the pandemic (see graphic below)
- Details of the cessation of temporary abatement were announced to members some time ago: COVID-19 guidance on support for retired members | NHSBSA, with an update issued to employers on 10th January 2022 The Coronavirus Act 2020 | NHSBSA
