The Pharmaceutical Journal
Vol 279 No 7471 p341
29 September 2007

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Pension agreement reached for NHS staff

New pension arrangements for NHS staff in England and Wales will start in April 2008 following acceptance of the final agreement for changes to the pension scheme by health minister Ben Bradshaw last week.

The final agreement is similar to proposals for the new scheme that were consulted on last year (PJ, 12 August 2006, p181) following a four-year review.

There will be an updated pension scheme for existing staff and those who join up to 31 March 2008. It will continue to be a final salary scheme and a normal pension age of 60 years will be retained along with some new benefits.

In addition, a new final salary scheme will be available for those who join after 1 April 2008. The normal pension age for these staff will be 65 years. The minimum age for drawing a reduced pension will also increase from 50 to 55 years for new entrants.

Other changes in the new scheme include:

• earnings-related, tiered contributions; cost-sharing arrangements between employers and staff

• survivor benefits for all nominated partners

• a purchase facility for members who wish to increase their benefits

• step-down arrangements so those approaching retirement can transfer to less demanding duties without loss of entitlement

• more flexibility for those wishing to convert part of their pension into a lump sum on retirement


Details of the specific rules and benefits for each scheme can be found on the NHS Pensions website. All NHS staff will receive basic information about the changes through a leaflet included with their pay advice in November 2007.

Staff in the current scheme will be given the option to change to the new scheme for a limited period.

“The new arrangements will give staff more control over how they save for their retirement, as well as how and when they retire, while managing costs,” said Mr Bradshaw.