On the go: The government has extended its relaxation of pension rules by seven months for NHS staff returning to work so they are not hit by reduced pension payments.
In a consultation published on February 15, the Department of Health and Social Care proposed amendments to the NHS Pension Scheme regulations to continue the suspension of restrictions on return to work introduced by the Coronavirus Act.
The coronavirus bill, which includes temporary emergency legislation to tackle the Covid-19 crisis, includes measures to help returning NHS staff receive full pension payments.
The proposed amendments to the NHS Pension Scheme regulations will replicate the temporary suspension of the 16-hour rule, abatement of members who retire and return to work between age 55 to 60 and abatement of drawdown members who claim a portion of their benefits and continue working.
Under normal circumstances, retired doctors or nurses returning to work could see their NHS pension reduced under a process known as “abatement”.
But in March 2020, the government proposed to temporarily suspend the abatement rules as it urged retired medical professionals to consider re-entering the workforce to help tackle the coronavirus outbreak.
Under the so-called “16-hour rule”, members of the scheme saw their pension suspended if they returned to work and committed to more than 16 hours a week within the first four weeks.
The suspension of this rule allowed for staff to return to work immediately after retirement and continue their existing working commitments, or increase them, while still receiving their full pension benefits.
The bill was set to end on March 24 2022. However, in the proposals outlined on February 15 it will take effect from March 25.
The DHSC said a suspension until October 31 will ensure that the NHS workforce benefits from increased capacity from retired and partially retired staff during the ongoing Covid-19 response.
It stated: “However, a temporary suspension also ensures the easements remain linked to the pandemic response period only and expire at the correct time once the need for emergency provisions has ended.
“The further continuation of the easements allows the NHS sufficient time to deal with the Omicron variant. In fairness to all scheme members and the public purse, it is right that abatement applies under normal circumstances to restrict the benefits provided to a closed cohort of staff.”
Graham Crossley, NHS pensions expert at Quilter, said: “It is very pleasing to see that, following pressure from the industry, the DHSC has opened a consultation into extending the suspension of the abatement rules, which, if not changed, will mean doctors and nurses who have returned to the NHS to help with the pandemic will suffer a penalty on their pension.
“Sadly, there will be some staff who have already left the NHS in anticipation of there being no change to these rules, and it’s a shame it has taken so long to get here. Many medical staff will be buoyed by the opportunity to keep helping the NHS at this critical time.”
He continued: “However, there are concerns around the October 31 2022 extension. The existing March deadline caused headaches with workforce planning in January and February.
“By moving the deadline to October, it gives doctors and nurses very little sense of security and it risks similar job planning issues in August. But this is no doubt good news for the NHS.”
This article originally appeared on FTAdviser.com
