The recent soaring rate of inflation will have significant tax implications for some GPs’ pensions. This applies to those who are active members of the scheme contributing at any point of the current 2022/23 tax year, as you could have very large Annual Allowance charges, when such charges become due, depending on your accounting / pensions administration.
The BMA Pensions Committee have launched a new CPI modeller https://www.bma.org.uk/pay-and-contracts/pensions/tax/cpi-modeller-for-gp-pension-scheme for the GP pension scheme for GPs to look at their pension growth in 2022/23 and 2023/24 tax years, and to explain the problems with poor design of the Annual Allowance and how it will interact with the 1995 / 2015 GP pension scheme, and Annual Allowance taxation.
It is important that you urgently take steps to at least understand your position and the potential impact this may have on future Annual Allowance charges. Entering your own data and numbers in the tool will only take a few minutes and will enable you to see how this might affect you personally – for many members they may need to estimate the value of their current pension based on their most recently available pension savings statements, subsequent contribution history and pensionable earnings.
The BMA Pensions Committee continue to lobby Government on this significant issue and encourage GP’s to raise this with their local MPs, and help increase awareness with fellow GPs.