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NHS Pension lump sum to be taxed?
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# 1
Old 22-01-2011, 9:15 PM
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Default NHS Pension lump sum to be taxed?

I've heard that the government are considering taxing the 'tax free' lump sum we get on retirement. Anyone else heard this? Could they really do this?

It's just getting better.... payfreeze, high cost of living area freeze, increment freeze, no increase on my mileage allowance, more tax, more NI, pay more for my pension..... Christ, I'm gonna be paying them to go to work soon!
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# 2
Old 22-01-2011, 9:31 PM
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I've heard that the government are considering taxing the 'tax free' lump sum we get on retirement. Anyone else heard this? Could they really do this?
There is no such proposal or even a hint of a rumour. Its one of these myths that goes around from time to time and has done for over 30 years. It seems to be doing the rounds in the NHS at the moment as you are third NHS member to ask this on these forums. Most workplace stories are false and spread by know it alls (who know nothing) or jaded troublemakers who do it maliciously.
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# 3
Old 22-01-2011, 9:44 PM
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They might re launch the scheme without this for new staff entrants. But given the Government's declared aim to slim down the NHS in theory they shouldn't be employing new staff for some time to come so it is unlikely to deliver any massive savings.

There is no knowing what a future Government might do in defence of the State. Extending State Retirement Age was already Government Policy and now it is Government Policy to accelerate this further. The same Government just a different hue.
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# 4
Loughton Monkey
Old 23-01-2011, 12:41 AM
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You need to be concerned that you are quite low down in the "NHS Rumour Food Chain".

This worthless, idiotic, baseless, ill informed rumour was 'doing the rounds' well before Christmas. You need to ask why you have only just 'heard' of this tripe. After all, what if, for a change, you get a "truthful" rumour within the NHS? You might find it has happened before you get to hear of it.

Firstly, cast this thought completely from your mind. Secondly, sharpen up your grapevine.
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# 5
Old 23-01-2011, 3:20 PM
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Default .

Can I also say, as a fellow NHS Employee, that at least 2 of the cuts you list have not taken place, certainly not in my healthboard anyway. I was under the assumption that pay related issues were national rather than decided at healthboard level? Therefore I can only assume you are misinformed and you should look into this.
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# 6
Cautious Investor
Old 23-01-2011, 4:12 PM
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For any change to take place to the tax free lump sum it would have to be doen across the board i.e. not only to the NHS but all pension schemes of any sort.

However, like others on here I have heard nothing over the past couple of years to indicate a change is even being considered let alone on the way.

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# 7
Old 24-01-2011, 10:34 PM
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I am also an NHS employee and have recently taken my pension early then returned to work on reduced hours. I spent a great deal of time looking at all the options before making my decision.

At no time did I hear of the lump sum being taxed. I must admit that the possibility of further government changes in the future swayed my decision.

There have been major changes recently to the NHS pension scheme from the 1996 to the 2008 section. Information on this can be obtained from the NHS pension site.
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