There are two main financial implications following 24 hr retirement
The first is the way in which a partnership will treat the superannuation contributions previously made by a partner who rejoins that partnership. There has been some contention over this issue. A GPs NHS superannuable earnings are that GPs NHS superannuable proportion of the gross NHS attributable profits, and are therefore deducted from each partners capital accounts in proportion to their share of the profits. The capital account is thus a reflection of profit share, and if a partner is no longer contributing to the NHS pension scheme, this deduction cannot be made. It therefore follows that a partner who has taken 24 hr retirement is entitled to receive their normal profit share, and will therefore have a 22.5% (14% + 8.5%) greater profit than those partners who are still making superannuation contributions.
It may be that such a returning partner will have negotiated a different profit share if their workload has reduced, but the principle of entitlement to non deducted superannuation remains.
GPs may also see their seniority payments alter if they return to a reduced work commitment. Seniority is the last remaining personalised payment within General Practice, and is based on the proportion of superannuable income received relative to average GP superannuable remuneration. Although GPs who have taken 24 hour retirement do not make superannuable contributions, they still have an identifiable amount of superannuable income against which their entitlement to seniority payments can be assessed. The LMC recommends annual Pension Certificates are still made on behalf of such doctors, but that a nil contribution note is made on the return.
Salaried General Practitioners are not entitled to seniority payments, and their salary without superannuation deductions is subject to their contractual agreement
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