A number of allowances and pay enchancements can be paid by employers, some of which are pensionable and some which are not.
While different employers may apply different terms to the same, or similar payments, i.e., what one calls a bonus, another may refer to as performance related pay, it is the responsibility of the employer to determine which payments are pensionable and which are not.
In order to make these decisions, the following considerations should be taken into account:
- It does not necessarily matter whether the payment is consolidated; the main considerations are that it must be a regular and continuing feature of the the job, and the member must have a reasonable expectation of beng able to earn the payment on a regular basis (yearly is considered regular) through performance of their day-to-day duties.
- Payments which may fluctuate, are once-only payments, or relate to hours above standard whole-time hours for the post are not pensionable.
- Performance related payments not part of an individual's pay package and one-off lump sum or discretionary bonus, or incentive payments for completion of a particular job are not pensionable.
- Payments attached solely to the performance of employers are not pensionable.
It should always be borne in mind that when groups of people will be affected, whatever decision is made for one should apply to others in the same position.
The information below highlights many of the allowances and pay enhancements which can be payable based on whether employees are under the Agenda for Change (AfC), or if they are Medical and Dental staff, and outlines whether the payments are, or are not pensionable. This list is not exhaustive, if you require information about a specific type of payment which is not mentioned, please contact us for further information.
Agenda for Change (AfC) employees
Unsocial Hours Payments
Pensionable = Yes
Staff receive enhancements for working “unsocial hours” as defined within the AfC Handbook; rates will vary according to the employee’s pay banding. Unsocial hours payments, also known as Other Superannuable Payments (OSPs) are to be recorded separately from salary payments on the SPPA retirement application form.
Unsocial hours payments are pensionable regardless if they are ‘regular’ or otherwise, however an exception will apply where additional hours are worked above whole-time, or above the contracted hours for members who have taken partial retirement in the last 12 months.
Overtime
Pensionable = No Uprated for part-time members = N/A
Overtime is any hours worked in excess of the agreed standard whole-time hours (currently 37 hours per week); it is not extra hours worked by part-time staff below the standard whole-time hours for the post.
For members who have taken partial retirement in the last 12 months, overtime is hours worked above their contracted hours.
Distant Islands Allowance
Pensionable = No Uprated for part-time members = N/A
Staff working on certain Scottish Islands receive an annual payment to help pay for trips to the mainland.
Sleeping in payments
Pensionable = Yes Uprated for part-time members = No
These payments apply where staff sleep on work premises or in a client’s home but are seldom required to attend an incident during the night. The term “sleeping-in” does not refer to individuals who are on call from the workplace but are able to rest between periods of work done.
An allowance will be equivalent to the on-call availability allowance. In addition to this, staff will receive a payment of two hours at the NHS Scotland minimum hourly rate to reflect disturbed time at the start and end of each shift.
Sleeping in payments are not uprated for part-time staff.
While sleeping in payments are pensionable, it should be noted that the actual call out hours worked are not pensionable.
On-call availability allowance
Pensionable = Yes Uprated for part-time members = No
For on-call purposes, the week is divided into sessions which cover the end of one working day and the beginning of another.
For on-call purposes, the working week is split into a maximum of 9 on call sessions:
- Monday to Firday – 1 session each day (each session should be no more than 16 hours)
- Saturday and Sunday – 2 sessions each day (each session should be no more than 12 hours)
- Public Holidays – 2 sessions each day (each session should be no more than 12 hours)
Each session on-call attracts an Availability Allowance of £19.64 (rate at 1 April 2019) and is not uprated for part-time staff.
While on-call availability allowance payments are pensionable, it should be noted that the actual call out hours worked are not pensionable.
Recruitment and Retention Premium (Short-term)
Pensionable = No Uprated for part-time members = N/A
Where boards find it difficult to recruit and retain staff in a given profession at their assessed AfC salaries, a premium can be applied to the pay of that staff group to reflect prevailing market conditions. On some occasions this will be paid for a short period of time after joining the organisation.
Recruitment and Retention Premium (Long-term)
Pensionable = Yes Uprated for part-time members = Yes
Where boards find it difficult to recruit and retain staff in a given profession at their assessed AfC salaries, a premium can be applied to the pay of that staff group to reflect prevailing market conditions. On some occasions this will be offered to the employee on a long-term contractual basis in addition to core salary.
In this situation, the Recruitment and Retention Premium is uprateable for part-time staff and is pensionable.
Golden Hello (Recruitment)
Pensionable = No Uprated for part-time members = N/A
A golden hello payment can be used by employers to aid recruitment.
Midwifery Supervision Allowance
Pensionable = Yes Uprated for part-time members = No
Certain midwives receive a small annual allowance for fulfilling certain statutory regulatory duties.
As the value of the allowance is paid at full-time rate, it is not uprated for part-time staff.
Medical and Dental Staff
Waiting Time Initiative [WTI] Payments (Consultants)
Pensionable = No Uprated for part-time members = N/A
In circumstances where, as a direct result of published National or Local waiting times targets, the employer requires increased ad-hoc activity not previously identified within the job plan, the Consultant and employer can agree a separate contract for this work, which is voluntary.
Out of Hours Work
Pensionable = *Yes Uprated for part-time members = Yes
For Consultants, work undertaken outside the hours of 8am – 8pm, Monday – Friday and on public holidays is classed as “premium time”. During premium time the length of Programme Activities (PA) are reduced to 3 hours (rather than 4) or by agreement, the rate of pay for a four hour PA increases to the equivalent of “time and a third”. A maximum of 3 PAs per week can be reduced in this way.
For Speciality Doctors and Associated Specialists, this is split into Predictable Out of Hours Work and Unpredictable Emergency Work arising from on-call duties.
*Out of Hours (OOH) work is pensionable only where the OOH are part of contractual Programme Activities and should be uprated for members who work part-time. Where OOH are part of Extra Programme Activities, the payment is not pensionable.
On-call Payment for work done whilst on-call
Pensionable = No (full-time members) Yes (part-time members) Uprated for part-time members = N/A
The working time paid during “on-call” or “stand-by” periods (e.g. call out payments or overtime payments made) are not pensionable for full-time members but are pensionable for part-time members up to WTE.
Resident ‘On-Call’ payments (Consultants)
Pensionable = *Yes Uprated for part-time members = No
Consultants do not, except in exceptional circumstances, undertake resident on-call. The employer can, where appropriate, agree with the local negotiating committee (LNC) for medical and dental staff the arrangements in respect of resident on-call, including remuneration. Where it is agreed between the Consultant and employer that they will undertake resident on-call duty, the arrangements agreed with the LNC apply.
*Any hours worked as a result of being ‘On Call’, for example hours if worked above whole-time hours, would be non-pensionable.
On-call availability allowance
Pensionable = Yes Uprated for part-time members = No
Consultants on an on-call rota are paid an on-call availability supplement in addition to basic salary, which recognises the inconvenience of being on a rota, and the duty to participate in it. The level of supplement will depend on the rota frequency and the typical nature of the response.
Speciality Doctors / Associare Specialists who are required to be on an on-call rota will be paid an on-call availability supplement.
Recruitment and Retention Premium (Short-term) [Consutants]
Pensionable = No Uprated for part-time members = N/A
In certain circumstances, employers may pay Consultants a recruitment or retention premium. These can be paid as a single sum, or on some occasions will be paid for a short period after joining the organisation.
Note: The Scottish Government Recruitment and Retention Premia Policy (DL20175) notes that ‘short-term’ is normally for no less than one year, but may be awarded on a one-off basis or for a fixed period. Short-term is therefore considered less than 18 months.
Recruitment and Retention Premium (Long-term) [Consultants]
Pensionable = Yes Uprated for part-time members = Yes
In certain circumstances, employers may pay Consultants a recruitment or retention premium; on some occasions this will be offered on a long-term contractual basis in addition to core salary.
Note: The Scottish Government Recruitment and Retention Premia Policy (DL20175) notes that ‘long-term’ is where there is a need for the foreseeable future. Long-term is therefore considered to be 18 months or longer.
In this situation, the Recruitment and Retention Premium is uprateable for part-time staff and is pensionable.
Fees for NHS work
Pensionable = No Uprated for part-time members = N/A
There are a variety of fees for NHS work undertaken by doctors and these can include medical / professional lecture fees. In principle, the doctor is entitled to the fees for work done in his or her own time, or during annual or unpaid leave.
Directors of Public Health Supplements (Consultants)
Pensionable = Yes Uprated for part-time members = Yes
Directors of Public Health are entitled to banded supplements (B-D and Island Health Boards) in addition to basic salary as set out annually in the Scottish Government Health Directorate Circulars. Eligibility for each band depends on the population served by the post and the weight of the post.
Additional Responsibility Payments (Consultants) and various Management Allowances
Pensionable = *Yes Uprated for part-time members = **Yes
There is discretion for employers to pay additional responsibility payments. Often employers will use this provision to pay consultants for any additional responsibilities, such as being a clinical or medical director. Where such activities are remunerated, this will be by contracting for extra PAs or by additional remuneration agreed locally or a combination of both. It is also possible to substitute the time for other activities.
*Additional Responsibility Payments for Consultants and Various Management Allowances are pensionable if in place for more than 12 months.
**These payments are uprated for members who work part-time only if additional responsibility is part of core contract of 40 hours.
Potential flexibilities in determining pensionable pay
Staff who have concerns about pension tax charges may feel they need to take action to limit their pension growth. Determining certain elements of pay as being non-pensionable may help staff to limit the value and rate of their pension growth.
Employers have some flexibility, within the rules of the NHS Pension Scheme (Scotland), in determining what pay is pensionable, depending on the nature and duration of the payment. For example, employers may consider linking allowances to non-pensionable PAs or establishing non-pensionable one-off bonus payments in recognition of the completion of additional activity. Most temporary and local payments can be determined as non-pensionable.
However, pension tax matters are very specific to the varying circumstances of each individual and the nature of the payment. We would therefore encourage employers to discuss pensionable pay arrangements with staff individually to reach an appropriate agreement. Any measures that are put in place should be reviewed regularly to ensure the arrangements remain appropriate for the individual and the employer.
Medical Director Allowance
Pensionable = *Yes Uprated for part-time members = Yes
Where the member of staff is working whole-time (10 PAs) and undertakes medical director duties in addition to a 10 PA contract, this can only be pensionable if they are paid in the form of an allowance.
*If an individual is paid extra PAs for the performance of these duties, these will not be treatd as pensionable. Where an individual is working part-time (fewer than 10 PAs) and undertakes medical or clinical director duties, these can be pensionable if paid as PAs up to 10 PAs.
Discretionary Points (Consultants)
Pensionable = Yes Uprated for part-time members = Yes
Discretionary Points are paid to Consultants who have reached Point 5 on the new consultant (2004) salary scale in recognition of outstanding work at Board level.
Distinction Points (Consultants)
Pensionable = Yes Uprated for part-time members = No
Distinction awards are payable to those consultants who have been recommended by the Scottish Advisory Committee of Distinction Awards (SACDA) for exceptional and outstanding work at national level.
Advisory Appointment Expenses (Consultants)
Pensionable = No Uprated for part-time members = N/A
Fees are payable to practitioners appointed to serve as members of Advisory Appointment Committees for whole or half days.
Intensity Supplements (Consultants)
Pensionable = Yes Uprated for part-time members = No
Consultants on the pre-2004 contract are entitled to intensity supplements ranging from £960 for low intensity up to a maximum of £2,860.00.
Family Planning
Pensionable = No Uprated for part-time members = N/A
A range of family planning fees are available which range from £22.65 to £263.17.
Adults with Incapacity (Scotland) Act 2000 certification
Pensionable = No Uprated for part-time members = N/A
A fee is payable for completion of assessment and certification under the Adults with Incapacity (Scotland) Act 2000, Part 5, Section 47 for authorising treatment under the NHS by an independent health professional (for example, dentist, optician, community pharmacist) where no valid certificate exists in respect of treatment by the practitioner, or where they are unable to treat under an existing certificate.
Banding Supplements (Junior Doctors)
Pensionable = No Uprated for part-time members = N/A
Junior Doctors receive a banding supplement where they work for more than 40 hours per week, or more than their core hours Monday to Friday before 7am or after 7pm. The supplement is calculated as a percentage of basic salary, according to the band to which the doctor’s rota is allocated.
This payment is essentially for hours worked above whole-time so is non-pensionable.
Other Allowances
A number of other allowances and fees can be payable in certain circumstances. The information below highlights many which can be payable and outlines whether they are, or are not pensionable.
First Aid Allowance
Pensionable = No Uprated for part-time members = N/A
First Aid allowance is not normally pensionable, however, an exception exists for ex-Highland Council staff where the allowance is superannuable as part of TUPE agreement.
High Secure Environmental Allowance
Pensionable = Yes Uprated for part-time members = Yes
This applies to all staff employed by The State Hospital and whose work involves ongoing access into and out of The State Hospital secure environment.
High Secure Clinical Responsibility Allowance
Pensionable = Yes Uprated for part-time members = Yes
This is applied in addition to the High Secure Environment Allowance, to staff exercising clinical responsibilities for patient care in high security conditions.
Dental Officer Trainer Payments
Pensionable = Yes Uprated for part-time members = Yes
Dental Trainer payment (Dental vocational allowance)
Pensionable = *Yes Uprated for part-time members = No
*These types of payments are generally pensionable but it should be noted that there will be arequirement to check dental terms and conditions regarding this payment.
Dental Recruitment and Retention Allowance
Pensionable = No Uprated for part-time members = N/A
In certain circumstances, employers may pay dentists a recruitment or retention allowance.
Honorary Appointments
Pensionable = Yes Uprated for part-time members = No
Honorary Appointments are not pensionable. If, however, the individual holds concurrent employment which is pensionable employment, any distinction award relating to the honorary appointment is included in the member’s pensionable pay.
It is advisable to discuss such cases with SPPA.
Remote Area Allowance
Pensionable = Yes Uprated for part-time members = No
Deprived Areas Allowance
Pensionable = Yes Uprated for part-time members = No
Offshore Responsibility Allowance
Pensionable = Yes Uprated for part-time members = No
Retainer Fee
Pensionable = Yes Uprated for part-time members = No
Snow Clearing
Pensionable = No Uprated for part-time members = N/A
Domiciliary Consultation Fees
Pensionable = Yes Uprated for part-time members = No
Any domiciliary fees should be recorded separately from salary payments on the SPPA retirement application form and should relate to fees earned in the same period as the 365 days’ pensionable pay.