Partner
retirement
Arrangements for retirement (or resignation) of a Partner will vary
greatly between Practices and the Partnership Agreement provisions
will define aspects particular to the Practice. The Partnership Agreement
should therefore be the first reference document when there is to
be a change to the Partnership.
A retiring Partner will be required to remove his/her capital from
the business. A major issue for Practices will be the method of raising
the funds to pay the outgoing Partner, and this needs to be discussed
with the Partners and accountant at a very early stage – if
a replacement equity Partner is to be recruited to provide these funds
the process will have to start immediately in order to be completed
in sufficient time to provide a clean change-over of funds. If a new
Partner is recruited for a mutual assessment period before reaching
parity (and before buying into the Practice), alternative arrangements
for repaying the outgoing Partner may be required. If a new Partner
is not determined to be the best way forward, then other methods of
payment must be explored, all within the Partnership’s defined
notice period.
There
is a Partner Retirement Checklist in the Partnership
Issues index of the Members Library.
If you are not a Member,
click here
for information about the benefits of membership and how to subscribe.
Further information
BMA
guidance for GPs who are retiring (with an emphasis on single-handed
GPs). Topics covered include:
- Succession and notice periods
- Returning to work after retirement
- Implications of retirement on partnerships
- TUPE, possible scenarios and financial implications
- Practice mergers
- Advertising and tendering vacancies
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