Sophie Kwiatkowski explains why it’s important you don’t miss the deadline for your net pensionable earnings submission.
For those of you performing NHS dental services, 30 June is an important date in the diary. This is the deadline for submitting your net pensionable earnings (NPE) on Compass.
Each year, as an NHS dental performer you are required to declare your NPE or NPE equivalent on Compass. The end of year annual reconciliation report contains an estimate of the pensionable earnings that you have undertaken on each contract between 1 April and 31 March. These will have been submitted by your principal, and it is your responsibility to check the figures are correct before confirming them.
Even if you are not opted-in to the NHS pension scheme, you are required by law to declare an NPE figure on Compass.
By having a dental specialist accountant, they will have the in-depth knowledge behind the NHS pension system and be able to provide you with your NPE figure. You can check this against the figure showing on Compass and either accept or reject the figure.
So why is this declaration important?
On the 1 April, your provider will have entered an estimate of your NPE onto Compass. If you are opted-in to the NHS pension scheme, you will have been making monthly superannuation contributions at the percentage based on this estimated NPE.
Once 31 March has passed, it is vital your NPE is checked to ensure you are declaring the correct figure. This is what determines whether you are making the correct level of superannuation contributions into your pension fund.
The figure declared by 30 June will be based on your actual NHS earnings for the period. If you declare a figure higher than the estimate, a catch-up payment of superannuation will be required. Alternatively, if you declare a lower NPE figure, you will be due a refund. These adjustments will usually appear in your August payslip.
If you do not complete the declaration, or submit it late – it may result in zero pensionable pay being submitted to the NHS, even if you have been making contributions monthly.
For more information visit pfmdental.co.uk.