Taxes Consolidation Act 1997 section 773

General Medical Services: scheme of superannuation

Section 773 allows the Revenue Commissioners to approve superannuation schemes for doctors providing services under the General Medical Services (GMS) scheme as if they were retirement benefits schemes for employees, and sets out how net relevant earnings and the aggregate earnings limit interact for doctors with both GMS and private practice income.

• Revenue may approve a GMS doctor's pension scheme (established under section 58 of the Health Act 1970) as a retirement benefits scheme, even where the scheme does not satisfy all of the conditions in section 772(2) and (3), subject to any conditions or undertakings Revenue considers appropriate.
• For the purposes of an approved GMS scheme, the doctor is treated as an employee, the doctor's services under the GMS agreement are treated as an office or employment, and references to Schedule E are read as references to Schedule D Case II (except in section 779). Contributions to the GMS Superannuation Plan are set at 15% of capitation fee income, of which the GP pays 5% and the HSE pays 10%; the HSE contribution does not form part of the GP's income.
• All GMS income received under the contract is treated as income from a pensionable office or employment for superannuation purposes, but not for general taxation purposes. GMS income is excluded from net relevant earnings (NRE) for the purposes of retirement annuity contributions. Since 2001, additional voluntary contributions (AVCs) may be made up to the relevant age-related percentage of net GMS remuneration, subject to the earnings limit, less the 5% contribution to the main plan.
• The aggregate earnings limit in section 790A applies to doctors with both GMS and private practice income: net GMS remuneration and GMS plan contributions must be considered first in determining the overall amount of tax-relievable contributions. Where net GMS remuneration equals or exceeds the earnings limit of €115,000, the doctor has no scope to claim relief for personal pension contributions in that year.