There has been some commentary on the changes in the NHS pensions access rules which we are aware has caused a great deal of anxiety for primary care networks (PCNs).

What is causing concern?

Many PCNs across the country have formed limited companies as a vehicle for providing services and employing staff on behalf of the PCN practices (PCN companies). Prior to 31 March 2023, there was no formal route under NHS pension scheme regulations by which those companies could provide access to the scheme for their staff. PCN practices are scheme employing authorities by virtue of holding a primary care contract. However, this did not apply to PCN companies.

A temporary solution was offered by which PCN companies could apply for a secretary of state determination or direction to obtain access to the scheme for their employees. These arrangements were time limited and expired on 31 March 2023.

Pension scheme consultation

It has been recognised for some time that the absence of a permanent access route to the scheme for PCN staff would be an obstacle to the success of PCNs. The Department of Health and Social Care launched a consultation between December 2022 and January 2023 which included (amongst other matters) consultation on access to the scheme for PCNs and PCN companies.

What has changed?

Independent Provider Employing Authority Access

As a result of the consultation, the scheme regulations were amended so that a sub-contract which complies with the NHS England template sub-contract for the provision of services related to the network contract directed enhanced service (DES sub-contract) is a qualifying contract for independent provider employing authority ('IPEA') access from 1 April 2023.

All existing IPEAs that hold a DES sub-contract must complete an independent provider application form, including all qualifying contracts in the application, before submitting the form and a copy of the DES sub-contract to NHSBSA. If approved, all eligible employees working on these contracts must be offered access to the NHS Pension Scheme.

Open PCN Determination Access

This new access is available from 1 April 2023 for employers of additional roles reimbursement scheme (ARRS) and PCN staff that do not have any other access to the NHS pension scheme.

An open PCN determination will only provide access for ARRS employees and employees working wholly or mainly on the PCN DES sub-contract (i.e. at least 50% of their time).

PCN companies can choose whether to apply for access for all eligible employees or to restrict the access to those employees who have been eligible to have access to the NHS pension scheme in the last 12 months, prior to them starting employment with the applying PCN company.

What do PCN companies need to do?

All previous time limited determinations have ended and any PCN company wishing to continue to access the scheme must reapply, either for IPEA access or open PCN determination access.

NHS Business Services Authority (BSA) is reaching out to PCN companies that have previously sought access to the NHS pension scheme to determine the access route required post April 2023 and notifying such companies that, if an application (whether for IPEA or open PCN determination access) is not received by 30 September 2023, previous employing authority codes will be closed down with effect from 31 March 2023 (i.e. immediately before the changes came into effect).

If you have not yet reapplied, you should do so without further delay and ensure that you are still putting aside the required contributions for staff.

Even for open PCN determination access, the PCN company must hold a DES sub-contract, and this must be sent with any application, even if not fully signed off by all parties, in order for an application to be approved.

All PCN companies should therefore ensure that they have a DES sub-contract in place. If your previous sub-contract documentation is not in the NHS England standard form, we recommend that you put in place replacement documentation using the national template. The details of the services being delivered by the PCN company will not necessarily need to be revised and you should be able to transfer these into the national template document.

How can we help?

We are already assisting PCN companies reapply for pensions access.

Our specialist primary care team at Hill Dickinson provides the following support:

  • advising on your eligibility to access the NHS pension scheme and the most appropriate access route for you;
  • assisting with the preparation of your DES sub-contract;
  • preparing and submitting applications for IPEA or open PCN determination access; and
  • supporting the development of your PCN structure and governance to prepare for the challenges ahead.

The Hill Dickinson team are on hand to support you and your organisation with any questions you may have.

Originally published 20 July 2023

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.