This change, introduced in 2023, allows eligible GPs to claim part of their pension while gradually reducing their working commitments but maintaining a level of clinical involvement.
Below is a summary of what practices need to know.
Partial retirement enables members of the NHS Pension Scheme to take between 20% and 100% of their pension benefits while continuing to work. From 1 October 2023, this option became available to members with 1995 Section benefits, in addition to those already in the 2008 Section and 2015 Scheme.
Most importantly, no 24-hour break in service is required for partial retirement, as is the case with 24-hour retirement, where GPs claim their full pension benefits. Partial retirement is a helpful alternative for all GPs but particularly those who are single-handed contract holders, as they do not need to resign from their NHS contract for 24 hours and take on a partner to hold the contract in their absence, which they would need to do if they wanted to draw their full pension without losing their contract.
- The GP must reduce their pensionable commitment and pay by a minimum of 10%.
- This reduction must be maintained for at least 12 months.
- The reduction can be achieved via a change in sessional workload or other pensionable duties.
- The drawdown can happen up to twice before full retirement.
- The GP continues contributing to their pension in the 2015 Scheme only.
- Practices will need to plan for cover to account for the reduction in clinical sessions, ensuring no loss of clinical capacity.
- There is no formal requirement to inform the ICB, but it is considered good practice (particularly for single-handed contractors), to do so as a courtesy and outline how the planned reduction in clinical capacity as a result of partial retirement will be covered within the practice.
The process for claiming partial retirement involves:
- Completing the Retirement Benefits Claim Form (AW8) and the Partial Retirement Supplementary Form via the PCSE online portal.
2. Submitting both forms via the PCSE Contact Us page. - PCSE will review the forms, add the required information and forward the application to NHS Pensions for processing.
- NHS Pensions will confirm the calculations and contact the GP in order to release the partial benefits.
- For the minimum 10% reduction to be valid, it must reflect a reduction in pensionable pay or sessions. Any return to previous levels within 12 months may impact eligibility.
- Temporary or flexible working arrangements post-retirement are possible but need to be carefully structured to avoid breaching the 10% threshold.
- Non-pensionable overtime may be worked beyond the reduced pensionable commitment for the first 12 months, subject to scheme rules.
- Any changes during the year are likely to reduce a GPs future pensionable income/salary. PCSE should be notified accordingly to ensure that pension contributions are calculated correctly based on the updated salary/income which prevents significant discrepancies when end-of-year forms are processed. Details of completing/submitting a Salary Change Form or Estimate of Pensionable Income can be found here.
BMA members can contact the BMA Pensions Team for help reviewing the AW8 form or with pension queries. BMA can also assist with following up on delayed applications with PCSE or NHS Pensions.
Resources and further Guidance
If your practice is supporting a GP considering partial retirement, or if you’re a single-handed contractor exploring this route, we recommend early discussions and planning to ensure a smooth transition with minimal impact on clinical capacity.
For any further guidance or queries related to pensions or contractual changes, practices can contact the GP Support Team.