If you have exceeded the annual allowance for pensions’ savings in 2011 / 2012 you must apply now if you would like the NHS pension scheme to pay the resultant tax charge. Applications must be made to the NHS Pensions Agency by 31 December 2013.

You could be facing an extra tax charge if the yearly growth in your pension and lump sum benefits is greater than £50,000 and you do not have any unused allowance to carry forward from the previous three tax years. You have the option to pay the tax bill directly – which could be tens of thousands of pounds – or elect for the NHS pension scheme to pay some or all under the ‘Scheme Pays’ rules in return for reduced benefits at retirement.