Guidance

Newsletter on the public service pensions remedy — July 2024

Published 23 July 2024

Calculate your public service pension adjustment service — update

In Public service pensions remedy newsletter — June 2024 we explained that the calculate your public service pension adjustment service is temporarily closed due to a technical issue and that we planned to re-open the service in July 2024, with a number of additional improvements.

As part of this activity, we have been conducting detailed testing on the new income sub-journeys and resulting calculation of tax charges, to ensure the correct outcome for all members. Due to the level of development and testing that is required, we have decided to keep the service closed for longer. We apologise for this delay, and we have not taken this decision lightly, but we are keen to ensure that we get this right for all our customers.

However, while working on the changes we have identified other opportunities to improve the customer journey. This includes streamlining the scheme pays processes for both members and pension scheme administrators. We will now also be including two additional improvements to the service which you have said would significantly improve the customer experience.

We will re-open the service with these improvements and the new triage process in September 2024. This means, that in September 2024, we will deliver the following:

Removal of original pension input amounts for the remedy period

For the tax years 2015 to 2016 through to 2021 to 2022, members will no longer be asked to enter the value of their original pension input amount. This reduces the amount of information that they need to provide as part of their calculation and submission.

Income sub-journeys

In cases where the member does not know the amount of their net income or threshold income, they will be presented with additional questions throughout the submission for the service to complete the relevant calculation.

Using the information entered as part of this new element of the journey, the service will determine if the member’s threshold income is above the threshold income limit for the relevant tax year and, if so, then the service will ask further questions to establish if the member is above the adjusted income limit for the relevant tax year.

If the member’s income is above the adjusted income limit for the relevant tax year, the service will retain and use the adjusted income amounts to calculate the member’s tapered annual allowance.

The service will also ask members to enter their personal allowance for each year. This is to ensure that the tax charge is calculated correctly to give an accurate result of any charge or repayment due. Where a member does not know their personal allowance, the service will ask some additional questions to determine the correct code to use.

Scheme Pays — credits

Where, as a result of the remedy, a member’s annual allowance charge in any of the tax years 2019 to 2020 through to 2021 to 2022 is reduced, and the scheme originally paid the charge, HMRC will send details straight to the pension scheme, for the repayment claim to be made. Where applicable, the member will be presented with a message telling them that this will happen.

Scheme Pays — elections

Where, as a result of the remedy, a member has more tax to pay, they will have to use the calculate your public service pension adjustment service to declare the tax charge (rather than declaring this on their self-assessment return). Originally the member would have been required to contact the scheme administrator with details of each scheme pays election that they decide to make. HMRC have decided to allow the member to make their scheme pays request through the digital service and we will then share it with the scheme administrator directly.

This along with future tax regulations will remove the requirement for the member to contact the scheme administrator, in every situation where additional tax is due as a result of the remedy, that they want the scheme to pay. The digital service will also ensure the member is aware that we will be sharing their scheme pays information with the scheme administrator directly and that their benefits will be adjusted accordingly.

Save and Return

Members will have the option to log in using their Government Gateway username and password and save their progress to return to it later. They will have nine months from when they last saved their progress, to make a submission.

After this period, information will be deleted, and they will have to start again from the beginning.

Members who do not have a Government Gateway username and password will still be able to use the calculator but will not be able to save and return.  If members want to create a Government Gateway account, they can register online.

Triage

We know that a lot of members who receive remediable service statements will not have any changes to tax charges that would need to be reported to HMRC through the service. We will introduce a triage process to help members decide whether they need to use the full calculator and submission service or not.  They will be asked a series of questions about their specific circumstances and will be presented with a message that informs them if, based on the information entered, they should make a submission to HMRC.

Interim process for members

While the calculate your public service pension adjustment service is unavailable, if you have members who need to make a submission to HMRC, ask them to email publicservicepensionsremedy@hmrc.gov.uk with ‘PSPR submission request’ in the subject line.

They can also contact HMRC by telephone and select option 1.

How you can help us

We’re committed to working with schemes and are looking for volunteers to help us develop the proposed changes.

If you’re interested in talking to us, email publicservicepensionsremedy@hmrc.gov.uk and put ‘Digital service changes’ in the subject line.

Your input will be invaluable to helping influence the future design and development of the service.

Contacting HMRC

All aspects of the public service pensions remedy are handled centrally by our specialist team.

If you have any questions including queries about legislation, how the remedy operates, our processes, guidance or our digital service, email publicservicepensionsremedy@hmrc.gov.uk.

This mailbox is monitored daily and where necessary queries will be escalated to the relevant areas for a response.