NHS Pension Scheme administration levy introduced

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The Department of Health has confirmed it will introduce an administration levy on employers from 1 April 2017, to cover the cost of administering the NHS Pension Scheme.

The levy will be flat rate 0.08 per cent of pensionable pay for all employers and will be collected in addition to the standard employer contribution rate of 14.3 per cent. This means employers will now pay a total of 14.38 per cent of pensionable pay. Employers will need to make arrangements with their payroll providers as soon as possible to ensure the increase is effective from 1 April 2017.

NHS Employers submitted a response to the consultation in January 2017, based on the collective views and feedback received from employers. The government's response to the consultation acknowledges a number of points from our response, particularly in relation to future changes in the levy rate and reporting requirements for employers. We would like to thank all employers who shared their views with us.

Read the government's full response to the consultation on the gov.uk website.

For more information, please see our updated pension contribution web pages.

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