Doctors who experienced financial detriment due to inaccurate pension savings statements will be reimbursed by the pension scheme administrator.
Earlier this month, the BMA said that at least 757 doctors received inaccurate statements for 2023/24, potentially preventing them from being able to complete self-assessment tax returns before the deadline at the end of the month, and causing ‘financial detriment and distress’.
The errors included ‘miscalculations of pension savings’, which were ‘distorting’ total amounts and making it ‘impossible’ for doctors to accurately report their tax status to HMRC.
Now the NHS Business Service Authority (NHSBSA) said that ‘correction work is ongoing’ and it is ‘working on this as an urgent priority’.
The pension scheme administrator said that doctors will be reimbursed for costs associated with the errors, provided that they submit an estimated self assessment before the end of this month.
NHSBSA has also self-reported to the pension regulator over the errors. It failed to answer Pulse’s questions on how many GPs have been affected by the issue.
In a letter to affected doctors, it said: ‘We will be able to reimburse you for additional costs you incur as a direct result of the 2023/24 pension savings statement (PSS) errors.
‘This includes interest and additional accountancy fees that you reasonably incur as a direct result of our 2023/24 pension savings calculation error.’
Last week, experts warned that while many PSSs are wrong, others haven’t been sent out all, despite being due last October and that delays are still ongoing.
NHSBSA said that based on current timescales, it expects to be able to start issuing corrected 2023/24 pension statements from 27 February.
The letter added: ‘It’s also vital that we follow robust quality assurance processes and checks in the rectification timescale and activity.
‘We’ve invited the BMA to be involved in that assurance process. We sincerely apologise for this and for not being able to provide you with an accurate timescale sooner.
‘We are again very sorry for this mistake and for any inconvenience it may cause you. We understand the importance of accurate pension calculations and we’re taking steps to deal with this issue as a matter of utmost urgency.’
NHSBSA told Pulse that further investigation on the error meant that 2,858 GPs were contacted and due to be reissued a revised pension savings statement.
A spokesperson said: ‘On further investigation, a decision was taken to send a revised PSS to all members that breached the Annual Allowance amount for 2023/24, regardless of whether they had already received a 2023/24 PSS.
‘Of those that we have identified and written to, 2,858 are GPs. All members that exceeded the annual allowance amount for 2023/24 have been contacted directly by letter, outlining our next steps, when they should expect to hear from us again with more information and when to expect a corrected 2023/24 PSS.’
The BMA warned that this compounds problems caused by the fact that tens of thousands of doctors have not yet received their Remedial Pensions Saving Statements and many have not received a pension savings statement for 2023/24.
In December, the Government unveiled proposed changes to the NHS pension scheme, including modifications to clarify the way GP pensionable earnings are calculated.
Pension savings statements errors
The error relates to the opening value of the pension used for 2023/24. The opening value for a tax year is normally the closing value from the prior tax year, uplifted by the previous September’s CPI value (in this case 10.1%). However, in some of the statements NHS Business Services Authority (NHSBSA) has issued, the opening value has been increased by 10.1% and then incorrectly by a further 11.6% (which is the revaluation rate applied to the 2015 pension). This has resulted in an inaccurate (higher) opening value, and consequently, an incorrect (lower) Pension Input Amount (PIA). NHSBSA believes this error affects around 750 statements, but we are still investigating this.
Source: BMA
