Government comes up with New Pension Proposal

New pension proposals from the Government for England and Wales are to be proposed in order to end the row with doctors over pensions.

A plan will be put forward to allow doctors flexibility when scaling down their pension contributions to avoid breaching the annual tax free allowance. The allowance was reduced from £255,000 a year to £40,000 in 2010 – 2011.

Previously favouring a 50:50 option, but ministers have now aid they will publish a consultation that favours giving staff working in the public sector the ability to reduce their contributions to zero, allowing doctors to be given the contributions employers would of made, boosting their pay packet by thousands a year. They are also promising to allow doctors to opt out form the pension scheme for this financial year in the hope to relieve the problems with immediate effect.
Health Secretary Matt Hancock commented “Doctors perform life-saving work every day and should not have to worry about the tax implications if they choose to take on additional work to help patients.”

Plans will be set out in a consultation to be published in the summer with a view for them to be introduced from April.