Employer Pension Contributions – Alternative Payment Policy (Recycling Employers Contributions (REC) Scheme) 2023

24 January 2023

With effect from 1st October 2022, NHS Scotland has introduced a new policy whereby trainees affected by an annual allowance tax charge, are able to apply for an alternative payment, provided they meet the required criteria; and opt out of the pension scheme. It is hoped this scheme will support trainees with options to continue in their present role and continue their career journey.  This applies to NES employed trainees who are currently active or deferred (since April 2022) members of the NHS Pension Scheme and who anticipate being affected by an annual allowance tax charge in respect of their pension for 2021/22 and/or 2022/23.

Please note individuals are responsible for taking their own appropriate independent advice and for their decision. NES cannot offer any advice or opinion.

Incomplete applications will only cause a delay in processing and may result in the application missing the required deadlines.  Completed applications must be received by the national deadline of 28th February.  We request that all applications are submitted as soon as possible and by Monday 13th February to allow time for NES to process through the payroll before the end of the financial year.  

National guidance is available – it is essential that this is read in full and that all such guidance is followed including links to helpful resources and individuals being responsible for seeking their own independent appropriate advice.

Subject to meeting the criteria outlined in the above guidance applications must be made using the following form and must be accompanied by all appropriate documentations.  This form should be read in full.  It includes some additional information and links to relevant resources.

For more information on the process please contact Fred Best, Lead HR Business Partner via email on fred.best@nhs.scot