Type 2 pension scheme for GPs

Why should GPs complete a Type 2 pension certificate?

In our Medical team, we regularly see GP practices where the NHS Pension Scheme Type 2 certificates have not been submitted. It's the salaried GP’s responsibility and legal requirement to complete and submit these certificates. What are these certificates and why are they important? Is it too late to submit certificates for previous years?

What is a Type 2 pension certificate?

An NHS Pension Scheme Type 2 certificate is a form that’s filled in each year by salaried GPs to inform PCSE of their pensionable income for the year. The contributions are then calculated based on total pensionable pay or annualised pay (if necessary) and compared to what has been paid to PCSE. This information is then passed on to the pensions agency.

The 2021/22 certificate has now been released. These need to be completed and submitted to PCSE by 28 February each year for processing.

Why are Type 2 certificates important?

The main reason we urge GPs to get these updated is so that your NHS Pension Scheme record is up to date. You may have paid for the pension contributions, but until that certificate has been submitted and processed, your pension record will not reflect that year’s pensionable pay.

Every year we see so many GP practices carrying forward balances for adjustments that are owing or are due back to the practice because the certificate hasn't been submitted.

Common problem areas

There are a few things to watch out for when completing pension certificates:

Maternity leave. There’s an authorised leave page in the certificate that needs to be filled out. This is because the employer’s contribution is based on the pay before the GP goes on maternity leave. Also, the tier rate for the employee’s contribution remains the same but applies to the pay whilst on leave.

The correct tier rate. When calculating the tier rate, you need to consider other pensionable income (partnership income from a surgery, GP SOLO income, locum income, etc). This all needs to be pensioned at the same percentage.

The correct figures. The income that’s recorded on a P60 isn’t pensionable pay but taxable pay. If you’ve used the taxable pay figure then the pension record won’t be accurate.

Childcare vouchers. If you have a deduction from your pay for childcare vouchers, your pensionable pay needs to be adjusted accordingly.

Is it too late?

It’s not too late to submit Type 2 certificates, even for previous years. It’s important to have your NHS Pension Scheme record up to date sooner rather than later. There are Type 2 pension certificate forms available on the PCSE website for 2015/16 through to 2021/22. There’s also an amnesty form that covers 2009/10 to 2014/15.

The Type 2 pension certificate forms and guidance are available here:

Need help?

If you, or someone you know, need some help to complete Type 2 certificates or you’re unsure of your current position with your NHS pension certificate history, please get in touch with a member of our Medical team and we can work with you to get your record up to date.

You can find contact details on the Our People section of the Larking Gowen website. Alternatively, call 0330 024 0888 or email enquiry@larking-gowen.co.uk.

Ashleigh Dijon