The Department of Health and Social Care (DHSC) recently published the outcome of its consultation on proposed amendments to the NHS Pension Scheme Regulations which confirmed changes to final pay controls from the 1 July 2021.
These changes are being applied retrospectively to final pay control charges since 1 April 2018 – this means you can ask for any final pay control charges since this date to be reassessed.
Changes to final pay controls have been implemented from 1 July 2021
This includes an increase to the allowable amount from the consumer prices index (CPI) measure of inflation plus 4.5% to CPI plus 7%.
New exemptions have also been introduced for increases in pensionable pay as a result of:
- nationally agreed contracts, framework agreements or re-banding where this is authorised under particular NHS terms and conditions
- a National Clinical Excellence Award (CEA)
- promotions following fair and open competition
- the ending of a salary sacrifice arrangement
- an increase in practice profits impacting non-GP providers (in certain scenarios)
Any final pay control charges calculated on or after the 1 July 2021 will take into account the revised CPI percentage and the new exemptions introduced to final pay controls.
The changes will be applied retrospectively to 1 April 2018
If you’ve paid or received an invoice for a final pay control charge on or after 1 April 2018 you can request for this to be reviewed.
Your request for reassessment must be received by us by 31 December 2021. Any requests received on or after 1 January 2022 will not be actioned.
We’ve created a new webpage with all the information you need on final pay controls, including how to apply for retrospective charges to be reassessed and the application forms you need for this.