www.independent-practitioner-today.co.uk
August 2020 Issue 124
INDEPENDENT PRACTITIONER TODAY
The business journal for doctors in private practice
In this issue
We’re coping with Coronavirus
Consultants at an eye hospital group tell how Covid-19 has changed the way they work P12
Heed the ‘Oracle of Omaha’
Is Warren Buffett the exception which proves the rule? Dr Benjamin Holdsworth on how hard it is to beat the market P24
Doctors forced to move to the 2015 NHS Pension Scheme will be compensated under new proposals which will remove the age discrimination judged to have arisen by the Court of Appeal. When the 2015 pension scheme was introduced, older members – within ten years of retiring – were allowed to continue with their final salary schemes in the 1995 or 2008 sections. But, in 2018, the Court of Appeal found this to be discriminatory against younger members in a case brought by judges and firefighters. The Government is now seeking to redress this discrimination across all public sector pension schemes in a move expected to cost £17bn. In association with
Put yourself in the shoes of your patient n See page 14
David Hare discusses the adjustments private doctors will need to make to live with Covid-19 P30
‘Hugely complex’ pension remedy Under the new proposals, eligible pension members will be given a choice about which set of pension scheme benefits they would prefer for the ‘remedy period’ which is between 1 April 2015 to 31 March 2022. They may choose their previous 1995-2008 scheme benefits or their 2015 scheme benefits. The Gover nment has now launched a consultation to ask members whether they would prefer to make this choice at the end of the remedy period or when they take their benefits on retirement. Patrick Convey, technical director for specialist financial planners Cavendish Medical, said: ‘This is an extremely complicated situation which will leave some non-medical industry insiders scratching their heads.
Guide to delivering superior patient experience in private practice
Adapting to new ways
Under the new proposals, eligible pension members will be given a choice about which set of pension scheme benefits they would prefer for the ‘remedy period’
By Robin Stride
£12.50
‘The NHS pension calculations are already fiendishly complex and now we may have to amend the last five years of tax calculations and annual allowance payments. ‘Many will be wondering how their eventual benefits will be impacted by refunds – for instance, if they have used Scheme Pays to cover tax charges – or their new status if they had deferred membership because of substantial annual allowance limits. ‘The implications for those impacted will be wide-ranging. Doctors should not have to face these important choices without expert advice. Only with detailed discussions can informed decisions be made.’ The Government’s consultation will close on 11 October 2020.
Doctors face three options for pensions The exact form of remedy will not be known until a while after the consultation closes on 11 October 2020, so there is no action to take until the final form of the solution is put forward – unless you wish to respond to the consultation questions. James Gransby, of RSM UK Tax and Accounting Ltd, told Indep endent Practitioner Today it appears affected doctors will be asked in 2022 to decide whether to: Maintain the status quo for the benefits they have been building up between 1 April 2015 and 31 March 2022. This will be the default option applied on their behalf if they do not state their preference; Make an irrevocable choice to switch from the reformed scheme they have been contributing to, to their legacy scheme, for that period. This is known as ‘immediate choice’; Defer their decision on whether to make the switch until retirement. Then they will receive more information about the financial implication of the decision. This is known as ‘Deferred Choice Underpin’. He said: ‘Knowing which option is right for you will mean becoming informed on the topic, or paying someone else who is, to help you make the best decision.’ ➱ continued on page 8