NHS trusts handing out cash top-ups to convince doctors not to retire early

Tuesday 16th April 2019 16:12 EDT
 

The NHS is handing out cash top-ups to doctors' salaries in a desperate bid to stop them from retiring early. Doctors are trying to avoid big tax bills from stricter pension rules that put a cap on their saving allowances.  It's led to thousands leaving the profession early, amid a worsening staff shortage in the NHS workforce. 

Around ten NHS trusts have now offered to contribute cash to doctors' pensions so they can opt out of the pension scheme, the Financial Times reports. York and Harrogate NHS trusts are among the organisations offering cash top-ups to salaries to senior doctors as an incentive to stay. 

'Our trust has an established scheme to support employees who wish to opt out of the pension scheme because of the lifetime allowance cap,' said a spokesperson for the York Teaching Hospital NHS Foundation Trust.

'We are in discussions regarding expanding the scheme to support those who wish to opt out because it is no longer economically viable for them to contribute if they would exceed the annual allowance by remaining in the scheme.'

Harrogate NHS Trust did not respond to a request for comment.  Restrictions which came into affect in 2016 mean doctors who earn more than £110,000 a year enter a 'taper zone' which triggers big tax bills. This can reduce the annual allowance – the tax-free amount workers can contribute to their pension – to £10,000 for those earning £210,000.


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