The Final Seniority Figure (FSF) is an earnings benchmark used to determine the level of seniority payment individual GPs are entitled to each year. The seniority payment awarded to an individual GP is dependent on their years of reckonable service in the NHS and their qualifying income fraction.
Annex B shows the current seniority payment scales, where payments increase as the number of years of reckonable service increase. The payment system operates using the following superannuable income fractions:
- A GP earning more than 2/3 of the national average superannuable income (excluding any seniority component) in any year receives 100% of the available seniority payment (relevant to the number of years they have been in service).
- A GP earning between 1/3 and 2/3 of the national average superannuable income (excluding any seniority component) receives 60% of the available seniority payment.
- A GP earning less than 1/3 of the national average superannuable income (excluding any seniority component) receives none of the available seniority payment.
Clearly, in any one financial year, it is not possible to know what the average superannuable income is until the full year has actually passed and all payments have been made. Therefore, in order to allow timely seniority payments to be made, an Interim Seniority Figure (ISF) is negotiated and adopted for use during the year (that is subject to review and potential revision once the final figures are available).
As with previously published Final Seniority Figures, and the ISF, the calculations are based on GMS Contractor GPs only.
In order to calculate the FSF for 2017/18, it is necessary to know the average NHS income of all GMS Contractor GPs in England and Wales. The best available source of data to enable this calculation is the NHS Pensions Agency, using information declared via the GP superannuation certificate.
Anecdotal evidence has suggested that not all payments managers are consistently applying this definition, and that instead total NHS income (including the seniority income component) is used in the calculation of entitlement. However, the analysis presented in this paper assumes that all payment managers consistently applied the rules set out in the Statement of Financial Entitlements (SFE)[1].