Your guide to completing Annual Reconciliation Reports for 2012/13

From 1 April 2013 your Annual Reconciliation Report (ARR) for 2012/13 will be available to complete in the NHS dentalportal. By having access to it through the portal, it will be much quicker and easier for you to complete.This booklet contains information on how to complete your ARR for 2012/13. To complete the process successfully, providersand performers will work together to discuss and agree the ARR figures using the portal. All providers and performers mustcomplete this by 30 June 2013.What is the ARR and why is it important?All providers and performers are required to confirm net earnings forthe 2012/13 financial year by 30 June 2013. We refer to this as the AnnualReconciliation Process. It’s important that this is completed because your netearnings are used to calculate your entitlement to statutory payments, suchas sickness, as well as to keep accurate pension records.Providers and performers who are members of the NHS Pension Scheme arerequired to confirm that the estimate of their net pensionable earnings (NPE)is correct. You do this by completing the ARR online.Tip:NPE (net pensionable earnings) isyour net GDS/PDS income paid upto 31 March 2013 excluding anypayment for maternity, paternity,seniority, long term sickness andtrainer’s grant paid from 1 April2012 up to 31 March 2013.If you are a provider, you will have beenrequired to complete and submit an ARRbefore. If you are a performer you will, forthe first time, also need to confirm directlywith your provider that the estimate of yourNPE (or NPEE) is correct for the financial year2012/13. This estimate can be found on theARR in the portal.Tip:NPEE (net pensionable earning equivalent) is your net GDS/PDSincome that you would have notified to us if you were in the PensionScheme, excluding any payment for maternity, paternity, seniority,long term sickness and trainer’s grant paid from 1 April 2012 up to31 March 2013. You can therefore have both NPEE and NPE figures ifyou were in the Pension Scheme for only part of the financial year.The 2012/13 ARR has been produced in accordance with the Statement of Financial Entitlements and is a requirement underthe NHS Pension Scheme Regulations. You therefore have both a statutory obligation and a contractual requirement todeclare your NPE or NPEE.Completing the ARRFollow these important steps to complete and submit your ARR.2

Step 4 - Providers OnlyConfirm or amend each figure for each of your performersNote:Please repeat steps 4 and 5 for each of your contractsTip:The pensionable earnings ceiling is 43.9% of the GDS/PDS contract value. This figure is shown in the topleft-hand corner of the Annual Reconciliation Processpage of the portal.Pensionable Earnings Ceiling – Providers onlyYou need to agree both NPE and NPEE figures with your performers. To calculate NPEE you need to identify any performers atthe practice who are not members of the Pension Scheme such as those who:• are receiving their pension;• have opted out of the NHS Pension Scheme; or• are incorporated and cannot pension their net income with effect from 7 November 2011.Any net NHS income that is attributable to these dentists forms part of the pensionable earnings ceiling and cannot beallocated to any other dentist.When all of your performers have agreed their NPE/NPEE figures, you should complete the ARR and ensure it is submitted by30 June 2013. Remember, the total of the NPE/NPEE declared for all performers must not exceed the pensionable earningsceiling (i.e. the maximum pensionable pay available for the sum of all of your performers).4

Step 5 - Providers OnlyOnce you’ve accepted the NPE/NPEE figure(s), click thebutton at the bottom of the portal page.An email will be sent to all performersnotifying them that their NPE/NPEE figuresare available for confirmation.Step 6 - Providers OnlyIf a performer submits a revised NPE/NPEE figure, you’ll be informed by email and should discuss the newfigure with the performer to reach agreement.When the new figure is agreed, the provider must enter it into the ARR process screen in the portal. Repeatsteps 3-5 and ensure the final figures are submitted by 30 June 2013. An additional link will appear entitled‘Show reason’, which will give the performer’s explanation for the amendment.Important information for providers onlySole traders or partnershipsProviders should declare the pensionable pay of any performersand take account of the net income of any non-pensionabledentists. The remaining balance is the amount the sole trader orpartner can pension.PartnersThe balance can be allocated between partners as per theirpartnership agreementLimited companiesFor limited companies, providers should confirm thepensionable pay for their performer(s) and take account of thenet GDS/PDS income of any non superannuable dentists. Theremaining balance is the amount the dentist shareholders (whoare active members of the NHS Pension Scheme) may ‘pension’.Only income taken in the form of a salary and dividends can be‘pensioned’. Any income not taken and left in the company isnot pensionable.The total pensionable income declared by a limited companypractice may not reach the net pensionable earnings ceiling.Where a limited company practice has a mixed NHS and privateincome, there is no need to apportion salary/dividends betweenNHS and private income for NHS Pension purposes. All salary/dividends paid, up to the ceiling, are available for allocation asNHS pensionable income.If salary/dividends paid by a limited company practice do notreach the maximum available in any year then the shortfall islost. It cannot be carried over to the following year.More information can be found at: http://www.nhsbsa.nhs.uk/Documents/Pensions/GDP_Pensions_Guide_(V2)_12.2012.pdf5

Step 7 - Performers OnlyYou’ll receive an email to notifyyou that your NPE/NPEE figuresare available for confirmationonce they’ve been reviewed byyour provider.Tip:Your ARR figures will be available for you to review on your NHSdental portal account from 1 April 2013.You should check each line in the ARR against eachcontract (if you work on more than one contract) tomake sure the estimated amount(s) for either NPE orNPEE is/are correct.If you’re happy with the amount entered, click Acceptand go to Step 10. If you feel the figures are incorrect, goto Step 8.Performers should review their NPE or NPEE and then selectAccept or Reject for the figures entered.Tip:The NPE/NPEE figure quoted is the estimated earnings figure for performers which has been supplied by therelevant PCT/LHB for April 2012 to March 2013.6

Step 8 - Performers OnlyIf you feel the estimated figure(s) for either NPE or NPEE is/are incorrect,click on Reject. A comments box will then be displayed. This should becompleted with the reasons you’ve rejected the figure so your provider cansee why it’s been rejected.Click apply once you have entered a suggested figure and your reasonfor rejecting the original figure, then clickYour provider will be automatically informed by email if youchoose to reject the figure. You should discuss and agree yoursuggested figures with your provider.Step 9 - Performers OnlyWhen a revised figure has been agreed, your provider must enter it into the ARR process screen in the portal byrepeating Steps 3-5.Once this has been done, repeat Step 7.Step 10 - Performers OnlyOnce you’ve accepted the NPE/NPEE figure(s), click thepage.button at the bottom of the portal7

TimetableDateActivity1 April The annual reconciliation reports are available in the portal30 June All annual reconciliation reports must be completed and submitted by 30 JuneJulyAugustAny adjustments needed as a result of the declared figures will appear on the July schedules paidon 1 AugustSD86Cs giving the final position for contributions will be available in the portal from early AugustMore informationYou can get more information on the annual reconciliation report 2012/13 process including associated guidance andFrequently Asked Questions on the NHS Dental Services website: http://www.nhsbsa.nhs.uk/2026.aspxFor more information on the NHS Pension Scheme, visit the website: http://www.nhsbsa.nhs.uk/Pensions.aspxIf you haven’t yet activated your dental portal account you’ll find all the information you need to do this on ourwebsite: www.nhsbsa.nhs.uk/DentalServices/portal