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A B C D E F G H I J K L M N O P R S T V W Y

The dental lawyer’s guide to unlocking your NHS pension- 24 hour retirement

The dental lawyer’s guide to unlocking your NHS pension- 24 hour retirement

Tuesday 21st November 2017

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Healthcare Bulletin - Issue 3

You own your NHS dental practice, you love it, you couldn’t bear to leave your wonderful patients and staff, but you wish that you could still get your hands on that NHS pension which you have accrued over the years. So how can you achieve this whilst still remaining in practice? Don’t worry, the dental team at Brabners can help.

To claim your pension you must: i) retire from your NHS contract for a minimum period of 24 hours and ii) have not worked more than 16 hours a week in the month preceding this retirement. If you have a partner on your NHS contract, this might be a simple process. However, for sole practitioners submitting notification to the NHS of your retirement would have the effect of terminating your contract.

If you want to continue to run and own your practice after claiming the pension, steps can be taken to ensure that this does not happen. The appropriate way forward is to add a second name onto your NHS contract, another dentist, who would act as a nominal partner. This allows you to ‘retire’ from the NHS for the obligatory 24 hours, and subsequently allows you to re-join the NHS and claim an entitlement to your pension the next day.

Obviously, the partner needs to be someone you can trust. It may also be sensible to have a document prepared, to formally stipulate that whilst this partner’s name appears on the NHS contract, the benefit of the goodwill and income will continue to be owned by you.

From the nominal partner’s perspective, it is worth bearing in mind that although they would have no actual right to any of the money from the NHS in accordance with their agreement with you, they do have obligations to the NHS once they appear on the contract. For example, if the practice runs behind whilst they are a partner, they are responsible (together with you) for clawback payments. If this is a significant risk, this partner may wish to ensure that their name is removed from the contract as soon as your name has been re-added to the contract.

The CQC is another factor to consider in this process. NHS England is likely to look to ensure that the partnership only starts once an application has been processed for CQC registration in the joint names of yourself and your proposed partner.

Once a CQC application has been processed, notice can be submitted to the NHS to add the second name to the contract and a date will then be set for your brief 24 hour retirement. Once this date is known, you can submit the ‘NHS BSA Pensions- Retirement Benefits Claim Form’ (AW8) to the Business Services Authority.

Following the 24 hour retirement, any changes that have been made to your NHS contract and CQC registration can be reversed. Your NHS contract can be returned to your sole name and you can re-apply as an individual for CQC registration.

However, for a number of reasons, you may wish to consider retaining the assistance of your nominal partner for a little longer.

For example, timescales for termination of a GDS contract upon the death of a sole practitioner are short and can only be extended at the sole discretion of NHS England. This puts an added and potentially avoidable stress on your family and executors, at an already stressful time.

Leaving a second nominal partner on your GDS contract would ensure that the NHS contract survives in their name following completion. In the event of your death, it would give your executors and family flexibility, giving them more time to sell on or possibly choose to continue running the practice.

Now all you need to do is find that trusted dentist friend and give us a call.

If you are interested in hearing more about what's driving demand in the dental and pharmacy markets and would like to discuss any matters in more detail please do not hesitate to contact Jonathan on the details provided below.


Nicola Lomas

Senior Associate
Dental Lead
T: 0151 600 3321
Email Nicola