The Annual Reconciliation Report (ARR) process is underway for the last financial year. Between 1 April and 30 June, NHS contract holders are obliged to confirm the actual Net Pensionable Earnings (NPE) for the previous financial year for each dentist at the practice.
It is an important process in that the amount declared each year will contribute towards the calculation of the final NHS pension for the individual. Both the practice owner and the associate must strive to agree the proposed NPE amount and enter into a discussion to resolve any discrepancy.
Units of Dental Activity (UDAs) may be completed by a Dental Care Professional (DCP). If this is the case, the NPE in relation to the work should be processed as a non-superannuable amount - Net Pensionable Earnings Equivalent (NPEE) against the contract.
Once the ARR is processed, a contribution adjustment may appear on the July NHS pay statement. If a refund is made it should be paid to the associate, and if a deduction of contributions is made the practice should attempt to recover the amount from any future payment.
In the event of the NPE not being declared or being declared incorrectly there will be the opportunity to correct any anomalies when the post-ARR process opens in October.
All members can read further details on how to calculate NPE and the ARR process in our advice for dentists on the calculation of NHS net pensionable earnings (England and Wales).
Extra and Expert members can also contact the BDA Pensions team on 0207 563 6897 or via email on advice.enquires@bda.org