Net Pensionable Earnings / Net Pensionable Earnings Equivalent (NPE / NPEE) are a performer's earnings for each financial year, taken from a contract's Total Contract Value (TCV). Additional payments such as trainer's grants, maternity payments and sickness payments are not included.
The maximum net pensionable income that can be declared for one GDS / PDS contract is 43.9% of the TCV.
Performer
A performer's NPE / NPEE is determined internally, it's a practice's discretion how they calculate this.
NPE / NPEE information and guidance is available on the NHS Dental Services website.
Provider
The provider has a statutory duty to allocate the pensionable earnings amongst all the performers who were active within the financial year. The performer's NPE / NPEE figures are deducted from the practices 43.9% ceiling and the remaining balance in the maximum allowable providers NPE / NPEE.
If the provider is in a partnership the remaining balance must be allocated between the partners in accordance with the partnership agreement. A dentist cannot superannuate a colleague's income even if the colleague is not a member of the NHS Pension Scheme
E.g. if a performer's NHS pay is £40k, however they opt out of NHS Pension Scheme, the senior partner(s) cannot increase their declared pensionable pay by the £40k.
NPE / NPEE information and guidance is available on the NHS Dental Services website.