Changes to NHS pension scheme regulations
8th April, 2016
New regulations come into force this month to resolve an issue that was causing some difficulty for GP Federations.
What is changing?
Previously, GP practices could not treat the fee income received from sub-contracts between their practice and a GP Federation, where the Federation held the main contract, as superannuable earnings for the purposes of the NHS Pension Scheme (“the Scheme”).
The regulations governing the Scheme only allowed bodies holding a relevant NHS contract to be an employing authority and treat income under that contract as superannuable earnings.
To address that specific issue, the new regulations permit practices that are already employing authorities under the Scheme and holding a prescribed sub-contract to an NHS standard contract to treat income from the sub-contract as superannuable.
What do GP Federations need to do?
In order to benefit from these changes, the sub-contract between the GP Federation and its sub-contracted practices must comply with Department of Health guidance on the NHS standard sub-contract.
The new regulations do not have retrospective effect so will only apply from 1 April 2016.
Unfortunately, the new regulations do not extend to forms of contract other than the NHS standard contract, but the Department may reconsider this restriction in future. If services under a GMS, PMS or APMS contract are sub-contracted, it continues to be the case that only the head contractor can treat earnings under that contract as superannuable for the purposes of the Scheme.
GP Federations holding an NHS Standard Contract may wish to renegotiate existing sub-contracts and ensure they comply with the prescribed sub-contract in order to take advantage of the new regulations.
It may also be possible to novate NHS Standard Contracts up from the participating practices to the GP Federation to take full advantage of this structure.
How can Ward Hadaway help?
Ward Hadaway can advise GP Federations on the application of the new rules, prepare an appropriate form of sub-contract for use between GP Federations and their practices, and advise on any revisions that may be required to existing sub-contracting arrangements in order to take advantage of the new rules.
Please do not hesitate to get in touch with Alison Oliver or Tristan Mander for further information.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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