“I find that NHS BSA’s statement that Dr N had retained enhanced protection was incomplete and misleading.”
PCSE and NHS BSA have been instructed to each pay Dr N £250 in respect of the “significant distress and inconvenience caused”.
Pension Scheme woes
The ombudsman's conclusion was the latest in a series of issues that have plagued the NHS Pension Scheme.
In May, it was revealed that nearly 40 per cent of the NHS staff who breached their annual allowance in 2018-19 turned to scheme pays to help them foot the bill, according to research from Quilter, which warned of a legacy of allowance issues for many doctors.
The figures showed that in 2018-19 some 13,548 members exceeded the annual allowance, with 5,115 (38 per cent) electing for scheme pays to help them pay the bill.
This compared with 22,428 breaching the allowance in 2011-12, but only 776 (3.5 per cent) turning to scheme pays for help.
The pensions tax system has been adversely affecting doctors for some time, and although the Budget 2020 lifted the adjusted income and threshold income levels under the tapered annual allowance by £90,000 for the 2020-21 tax year, there is still a legacy of annual allowance issues for many doctors.
The tapered annual allowance gradually reduces the allowance for those on high incomes, meaning they are more likely to suffer an annual tax charge on contributions and an LTA tax charge on their benefits.
The rules have forced senior clinicians and other high earning public sector workers to either leave their pension scheme, cut down on their working hours, or retire early to avoid punitive tax bills.
Tom Higgins writes for FTAdviser's sister publication Pensions Expert
