Skip to main content

Tier rates

Which tier rate should we note on the end of year payment template if the underpayment spans 2 tier rates for each period?

You should enter the October - March tier rate on the payment template. Please note if a practice makes a Year End payment for a Partner’s pensions contributions, the contributions will be allocated to March 2023 on the Partner’s record. 

This means the contributions related to the payment must be included in the October – March tab of the 2022/23 Type certificate.

Where the GP provider is a partner in two practices, how do we record annualised earnings and correct tier rate as the chances are based on one certificate the rate is different to if we base on two practice's profits?

If you were a partner at multiple practices with a GMS, PMS, or APMS contract, you must submit a Type 1 form for each practice. You need to include pensionable income from all practitioner posts when calculating your Tier Rates.  See for guidance on completing Type 1 form and also guidance on the 2022/23 annualisation calculator.

Is the tier rate for 12 months or 6 months?

During 2022/23, the tier rates for Employee contributions changed from 1 October 2022, meaning there  are two separate tier rates and there is a requirement to apportion pensionable earnings between two separate periods:

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

Due to this change, the tiered employee contribution rates for each 6 month period are shown separately on the 2022/23 Type 1 and Type 2 forms.

NHS Pension Regulations state that the two periods must be annualised separately:

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

NHS Pensions have published guidance to accompany the forms and annualisation calculator on their website.