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Superannuation

I work at a three-partner practice. One partner retired, took their NHS pension and came back to work as fixed-profit partner. The other partner and I are equal profit-sharing partners but that partner will retire in July this year. He plans to come back in the same equal profit-sharing partner role. This partner's current NHS superannuation employer's contribution of 14 per cent is paid as part of our PMS income. After retirement, will we continue to receive this 14 per cent on his behalf? And after he returns to the practice, will this money belong to the partner? Or is it practice income to be shared between all three partners?

The employer's superannuation that is included in your PMS baseline is practice income and should be shared between the partners. As one partner is on a fixed share, the balance of profits will be split equally between you and your other partner.

Assume the two of you each have a profit share of £100,000 (which includes the income for employer's superannuation). As the fixed share partner has taken their NHS pension benefits and no longer pays superannuation, this partner can draw their full fixed share profit amount.

This will also apply to your other partner after taking their NHS pension. However, because you are still in the NHS Pension Scheme your superannuation contributions (both employee and employer's) will be deducted from your profit share and you can draw the difference.

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