Hospital Pharmacist
Vol 12 No 2 p45
February 2005

News summary

Consultation started on reform of NHS final-salary pension

NHS staff are likely to need to work until the age of 65 to be entitled to a full pension, if proposed changes to the NHS pension scheme are implemented. The Department of Health commissioned the NHS Confederation to review the scheme in 2003 on behalf of NHS employers and the proposed changes are now the subject of consultation.

Currently, NHS staff retiring from the age of 60 are entitled to the full pension which is linked to their final salary and number of years worked. The proposed new scheme will raise that age to 65. Staff retiring between the ages of 55 and 65 will be able to claim a pension but at a reduced rate. Another significant change proposed is to calculate the pension based on average, rather than final, salary.

The terms and conditions committee of the Guild of Healthcare Pharmacists was due to meet on 9 February, after Hospital Pharmacist had gone to press, to discuss a response to the proposals. The committee’s chair, David Miller, told Hospital Pharmacist that there is no immediate cause for concern as those existing staff who intend to retire before 2013 will be able to do so without any loss of existing rights. He welcomed the fact that the scheme will retain its defined benefits status (rather than being a defined contribution scheme) which, he said, “guarantees the payment rather than relying on the vagaries of the stock market”.

The panel above outlines some of the significant differences between the current and proposed NHS pension scheme. The closing date for the consultation, which started on 10 January, is 11 April and more details are available from the following website www.nhsemployers.org