NHS Pensions - Annual Allowance Scheme PaysElection Notice

You should only completethis election if you want the 1995/2008 NHS Pension Schemeand/or the 2015 NHS Pension Scheme to pay some or all of your Annual Allowance charge because the growth in your NHS pensionbenefits is in excess of the standard Annual Allowance.

Mandatory or Voluntary Scheme Pays

We will accept a Scheme Pays election notice on a mandatory basis provided the following conditions are met:

  1. pension growth in the 1995/2008 NHS Pension Scheme or the 2015 NHS Pension Scheme must exceed the standard Annual Allowance, and
  1. your total Annual Allowance charge must be more than £2,000, and
  1. yourelection must be received by NHS Pensions by HMRC’s mandatory Scheme Pays deadline (see guidance notes1).

If you are a Scheme transition member we may accept a Scheme Pays election notice on a voluntary basis provided the following conditions are met:

  1. pension growth when added together from both the 1995/2008 NHS Pension Scheme andthe 2015 NHS Pension Scheme must exceed the standard Annual Allowance, and
  1. your total Annual Allowance charge liability must be more than £2,000, and
  1. your election form must be received by NHS Pensions by HMRC’s mandatory Scheme Pays deadline (see guidance notes1).

Annual Allowance

The standard Annual Allowance limit is currently £40,000 as confirmed in section 228(1) of the Finance Act 2004.

2015/2016 Tax Year

For Annual Allowance purposes only, tax year 2015/2016 was split into two ‘mini’ tax years; the pre-alignment tax year (6 April 2015 to 8 July 2015) and the post-alignment tax year (9 July 2015 to 5 April 2016).For an election to be considered the combined pension growth for both the pre- and post-alignment tax years had to exceedthe standard Annual Allowance of £40,000.

Tapered Annual Allowance

For an election to be considered the tapered Annual Allowance is ignored and the total pension growth in the 1995/2008 NHS Pension Scheme and/or the 2015 NHS Pension Scheme must exceed the £40,000 standard Annual Allowance.

An election which includes an Annual Allowance charge in respect of tapered Annual Allowance will not be accepted.

1 Notes to help you to complete this election can be found in the factsheet ‘Scheme Pays Election Guidance Notes’ available on the website.

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Part A: Personal details

Membership number / SD / Title (e.g. Mr, Mrs,Miss, Dr)
Surname
Forename
National Insurance number
Address
Post code
Personal email address
Telephone number

Part B: 1995/2008 NHS Pension Scheme - Annual Allowance charge details

Relevant tax year in which the Annual Allowance charge occurred e.g. 2015/16: / /
Is this a change to a previous election for this tax year? / Yes / No
Tax rate(s) payable in this tax year applicable to the Annual Allowance charge: / %
The amount of Annual Allowance charge you want the scheme administrator to
pay to HMRCfrom the 1995/2008 NHS Pension Scheme on your behalf: / £
Is this an estimate of your Annual Allowance charge: / Yes / No

Part C: 2015 NHS Pension Scheme - Annual Allowance charge details

Relevant tax year in which the Annual Allowance charge occurred e.g. 2015/16: / /
Is this a change to a previous election for this tax year? / Yes / No
Tax rate(s) payable in this tax year applicable to the Annual Allowance charge: / %
The amount of Annual Allowance charge you want the scheme administrator to pay to HMRC from the 2015 NHS Pension Scheme on your behalf: / £
Is this an estimate of your Annual Allowance charge: / Yes / No

Scheme transition members – completion of parts B and C

You can only complete parts B and C if your growth when added together from both NHS Pension Schemes exceeds the standard Annual Allowance and you want both NHS Pension Schemes to pay your Annual Allowance charge.

The method of splitting the Annual Allowance charge between both NHS Pension Schemes is confirmed in the ‘Scheme Pays facility for transition members’ information on our website.

Part D: Anticipated events

Before HMRC’s Scheme Pays deadline expires, do you expect to:

a)retire from the NHS Pension Scheme?

Yes / No / if yes enter date of you intended retirement / / / /
If yes please confirm the NHSPension Scheme(s) you are retiring from: / 1995/2008 / 2015
b)reach age 75 without taking all your NHS benefits?
Yes / No / if yes please enter the date of your 75th birthday / / / /

If applicable NHS Pensions must receive your election before the earliest date above.

Part E: Member declaration

I want thescheme administratorto pay my Annual Allowance charge from the NHS Pension Scheme confirmed in part B and/or part C.

I confirm that in the relevant tax year:

  • the growth inmy NHS pension benefits, confirmed in part B and/or part C,exceeds the standard Annual Allowance,
  • thetotal amount ofAnnual Allowance chargeI am liable to exceeds £2,000, (even if the amount I wantthe scheme administrator to pay is lower),
  • the Annual Allowance charge has been calculated at the relevant rate as described in section 237B(4) of the Finance Act 2004, meaning at the same marginal tax rate as my taxable income,
  • if I have estimated the Annual Allowance charge I will notify you of my confirmed amount within HMRC’s deadline for changing a Scheme Pays election,
  • I have read the ‘Scheme Pays Election Guidance Notes’on the website,
  • I am a transition member and I have read the ‘Annual Allowance – Scheme Pays facility for transition members’ information on the website.

I understand that:

  • this election is irrevocable and I cannot cancel the election at a later date (although it may be amended by sending in a further notice within HMRC’s deadline),
  • if I die after the scheme administrator receives this election but before the Annual Allowance charge is paid then the scheme administrator will ask HMRC for a discharge from paying the Annual Allowance charge and my estate must account for this tax liability,
  • interest is added up to the date my NHS Pension Scheme benefits crystallise or I transfer out,
  • my NHS benefits, when paid, will be permanently reduced in order for the Scheme to recover the Annual Allowance charge paid on my behalf to HMRC.

Signature:
Date: / / / /

Important: If we do not receive your completed election before the 31 July in the next tax year after the end of the relevant tax year (for example 31/07/2018 for year 2016/17)or an earlier date, part D, then you will be required to make your own arrangements for the payment of your Annual Allowance charge.

The Scheme Administrator reserves the right to request a discharge from paying the Annual Allowance charge if you have insufficient scheme benefits from which to recover the Annual Allowance charge.

A separate election must be completed if you have an Annual Allowance charge in another tax yearor you are making a change to a previous election.

Please return the completed election to:

NHS Pensions, PO Box 2269, Bolton, BL6 9JS

How we use your information

The NHS Business Services Authority – NHS Pensions will use the information provided for administering your NHS Pension Scheme membership and processing payment of your NHS pension benefits. We may share your information to administer and pay your NHS pension, enable us to prevent and detect fraud and mistakes, for debt collection purposes, or as required by law. For more information about who we share your information with and how long we keep your personal data and your rights, please visit our website at

Annual Allowance Scheme Pays-SPE 2-20180529-(V10)