Phasing out of seniority pay
- As part of the 2014/15 GMS contract agreement, NHS Employers and the GPC agreed that seniority payments will cease on 31 March 2020.
- There will be an annual reduction in seniority payments year on year, with an equivalent and simultaneous transfer into core funding. This started in 2015/16 and will continue until March 2020.
- There will be no new entrants to the scheme from 1 April 2014. The current qualifying arrangements will continue for those currently in receipt of payments.
- To phase out seniority, the total amount of funding with be cut by around 15% each year. This 15% includes the impact of attrition (retirement and closing entrants to the scheme) and an annual reduction to the seniority payscale.
- From 2016/17 onwards the adjustment to the global sum and seniority scale will apply at the beginning of the financial year.
Qualifying arrangements for those already receiving payments
Eligibility is determined retrospectively and related to profit share.
Seniority payments are part of an individual GP's pay (a partner, single-handed practitioner or a shareholder in a GMS contractor limited company), although they are paid to the practice. They are based on length of service as measured by the number of years of reckonable service (the number of years you have worked as a doctor in the NHS, not just as a GP principal).
- Whether you are entitled to receive the maximum seniority pay for the year in relation to your reckonable service will depend on your actual NHS pensionable profit and how this compares to the national average.
- If this exceeds two thirds of the national average, you will receive the maximum amount for your years of service to date.
- If between one third and two thirds of the national average, you will receive only 60%.
- If below one third of the average, you are not eligible for seniority pay.
- Seniority payments to GPs are calculated using an interim factor (average NHS pensionable profit estimate) and will be adjusted retrospectively when the final factor is known.
See the Statement of Financial Entitlements (SFE) paragraph 19 for details.
Current interim factor
The 2015/16 interim seniority factor is:
- £95,001 in Englad
- £86,926 in Wales,
- £87,108 for Northern Ireland.
- Details for Scotland to follow.
|Seniority payments for 2016/17 in England
|Reckonable NHS service||Adjusted rate of full annual payments from 1 October 2015
||Full annual rate of payment per practitioner from 1 April 2016
||Reckonable NHS service||Adjusted rate of full annual payments from 1 October 2015||Full annual rate of payment per practitioner from 1 April 2016|
|0 to 7 years||No payment||No payment
|8 years||£581.27||£0||29 years||£6,526.72||£6,496.55|
|22 years||£5,237.59||£5,213.45||43 years||£9,607.52||£9,563.25|
|23 years||£5,395.06||£5,370.20||44 years||£9,876.93||£9,831.41|
|24 years||£5,556.40||£5,530.79||45 years||£10,153.28||£10,106.49|
|25 years||£5,723.14||£5,696.76||46 years||£10,437.35||£10,389.26|
|26 years||£5,895.28||£5,868.11||47 years||£10,729.92||£10,680.47|