GP pension specialists. NHS Pension Scheme rules, partnership pensions, annual allowance issues, McCloud remedy, and AVCs explained for UK GPs.
Updated
Quick answer: GPs are in the 2015 NHS Pension Scheme — a Career Average (CARE) scheme with a 1/54th accrual rate and CPI+1.5% revaluation, one of the most valuable pensions in the UK. GP-specific issues include annual allowance breaches on pensionable profits, the McCloud remedy, and locums needing to opt in manually. It's almost never worth transferring out.
How the GP pension works
Each year you accrue 1/54th of pensionable pay, revalued annually by CPI + 1.5%. Normal pension age equals your State Pension age. Pre-2015 service may sit in the 1995 (1/80 + lump sum, NPA 60) or 2008 (1/60, NPA 65) sections.
The annual allowance problem
GP partners frequently breach the £60,000 allowance because the DB "pension input amount" is 16× the growth in accrued pension. A pay rise can create an £80,000+ input. Solutions: Scheme Pays (the NHSPS pays the charge from your benefits), carry-forward, and careful planning.
McCloud remedy
For 2015–2022 service, eligible GPs get the better of old (1995/2008) or new (2015) benefits, calculated at retirement. You'll get a Remediable Pension Savings Statement.
Locum GPs — opt in actively
Locums aren't auto-enrolled in the NHS scheme. You must submit Form A for each session (within 10 weeks) and Form B annually, or you lose pensionable service.
Should you transfer out?
Almost never — the guaranteed inflation-linked income would cost £25–£35 per £1 of annual income to replicate. Regulated advice is required over £30,000.
Frequently asked questions
GPs are part of the 2015 NHS Pension Scheme — a Career Average Revalued Earnings (CARE) scheme with a 1/54 accrual rate. Each year you earn 1/54 of your pensionable earnings, revalued by CPI + 1.5% annually.
Yes, from age 55 with actuarial reduction (typically 5% per year before normal pension age, which is your State Pension age). The 1995 and 2008 sections have different early retirement rules.
GP partners face complex pension issues including 'dynamising' factors, the McCloud remedy choice, and the impact of pensionable profits on annual allowance. Many GP partners breach the £60,000 annual allowance and face Scheme Pays charges.
Some GPs benefit from Additional Voluntary Contributions through the NHS Money Purchase AVC scheme (with Prudential), but others should focus on private SIPPs. Tax relief is identical, but flexibility and investment choice differ.
GPs who were active members of the NHS Pension Scheme between April 2015 and March 2022 will receive a Remediable Pension Savings Statement. They can choose between 1995/2008 (final salary) or 2015 (CARE) benefits for that period — whichever pays more at retirement.
Locum GPs can join the NHS Pension Scheme but must opt in actively — it's not automatic. They submit Form A and Form B regularly to record pensionable income. Many locums miss this and lose pension contributions they were entitled to.
