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EOY - Tier Rate

What should I do if different tier rateswere applied in the same year to individual roles, for example 9.2% as a salaried GP and 13.5% for Solo work?

The correct tier rate for the year is calculated based on your total pensionable pay.  

PCSE will calculate if there is a shortfall or overpayment for each individual roles as part of the reconciliation process and advise of any action required.

How do I work out my tier rate if my income has changed during the year?

Your tier rate is based on the total pensionable pay for the year.

Which types of income should I include when calculating my tier rate?

Income from all practitioner roles you held in the pension year, including solo and pensioned locum work, should be included to calculate the correct tier rate.

How do I determine my tier rate if my income has changed over the year?

If you’ve been in continuous practitioner employment for the full year, your tier rate is based on your total pensionable pay for the year – essentially the sum of all your earnings over 12 months.

If you’ve had any gaps in practitioner employment, you’ll need to use the annualisation calculator to work out your tier rate.

You can find the annualisation calculator on the link below. Look for the GP tiered contributions and annualisation calculator section. Click the plus sign to open the section. You can search for the relevant information within:

Information for practitioners and non-GP providers | NHSBSA

Is the tier rate for 2022/23 for 12 months or 6 months?

For the 2022/23 year, employee contribution tier rates changed on 1 October 2022. This means your pensionable earnings need to be split into two periods:

  • 1 April 2022 – 30 September 2022
  • 1 October 2022 – 31 March 2023

Because of this change, the Type 1 and Type 2 forms show the tiered contribution rates for each six-month period separately. 

NHS Pension Regulations require these two periods to be annualised individually:

  • 1 April – 30 September 2022 (183 days)
  • 1 October 2022 – 31 March 2023 (182 days)

To help you, NHS Pensions has published guidance and an annualisation calculator on their website. Use the link below, and look for the GP tiered contributions and annualisation calculator section. Click the plus sign to open the section. You can search for the relevant information within:

Information for practitioners and non-GP providers | NHSBSA