NHS pension members who experience a financial detriment due to being sent an inaccurate pension savings statement will be reimbursed by the pension scheme administrator.
Earlier this month, the BMA revealed that at least 757 doctors received a pension savings statement (PSS) for 2023/24 containing wrong information, potentially preventing them from being able to complete a self-assessment tax return before the deadline at the end of this month, and causing ‘financial detriment and distress’.
A PSS is sent out to any pension scheme member whose benefits have grown by more than the annual allowance and who may be liable for a tax charge for 2023/24.
The PSS errors included ‘miscalculations of pension savings’, which were ‘distorting’ total amounts and making it ‘impossible’ for those affected to accurately report their tax status to HMRC.
Now the NHS Business Service Authority (NHSBSA), the body responsible for the mistakes, said that ‘correction work is ongoing’ and it is ‘working on this as an urgent priority’.
However, it has admitted it won’t be able to issue corrected PSSs before 31 January, the deadline for self-assessment tax returns, and will only start sending out new statements after 27 February.
The pension scheme administrator said that members will be reimbursed for costs associated with the errors, provided they submit their self-assessment tax return before the end of this month using provisional figures.
In a letter to affected members, it said: ‘We will be able to reimburse you for additional costs you incur as a direct result of the 2023/24 pension savings statement (PSS) errors.
‘This includes interest and additional accountancy fees that you reasonably incur as a direct result of our 2023/24 pension savings calculation error.’
‘We are developing a process that will allow you to fast track any request for reimbursement,’ it also said, adding that it will write to members after 14 February with more information. In the meantime, it advised, members should ‘keep evidence of any charges’.
The NHSBSA further explained that HMRC would not issue a late filing penalty provided the 31 January tax deadline is met and that provisional figures can be changed until the cut off date of 31 January 2026.
It’s letter said it has reported the issue to the Pensions Regulator.
‘We are again very sorry for this mistake and for any inconvenience it may cause you. We understand the importance of accurate pension calculations and we’re taking steps to deal with this issue as a matter of utmost urgency, but it will take time,’ it said.
The BMA has been invited to participate in the assurance and checking processes undertaken to correct the errors, the NHSBSA added.
Last year, experts also highlighted that he NHSBSAadmitted errors and delays with sending out Remediable Pension Savings Statements (RPSS) to scheme members affected by the McCloud remedy.
A version of this article was first published by our sister publication Pulse
