Consultation on NHS pension changes under way for staff in England and Wales
Comments about new pension arrangements are being sought from NHS staff and employers in England and Wales.
The proposals would mean that final salary schemes will be maintained
for both new and existing staff. A tiered system is suggested, with staff
paying contributions relative to their salary. Staff earning up to £15,107
will pay 5 per cent of their salary, those earning up to £60,880
will contribute 6.5 per cent, those earning up to £100,000 will
contribute 7.5 per cent and those earning over £100,000 will pay
8.5 per cent. This means that most staff will pay more for their pension — currently,
all staff contribute 6 per cent, except for those classified as manual
staff who contribute 5 per cent.
Existing staff will have the option of staying with their current scheme
or moving to the scheme for new members. The new scheme has a higher
pensionable age (normally 65 as opposed to 60) but is described as being
more flexible, with staff having the option to take all or part of their
pension while continuing to work. Final salary calculations will be based
on the highest paid three consecutive years of employment in the ten
years before retirement, thereby allowing staff to take a lower paid
job in the run up to retirement but have their salary calculated on the
higher earnings they had previously. It is proposed that the new scheme
will start in 2007 and existing staff will be able to move over to it
from April 2008.
David Miller, chair of the Guild of Healthcare Pharmacists’ terms
and conditions committee, told Hospital Pharmacist that the proposal
has been negotiated between the trade unions and NHS employers and that
the negotiators are to be commended for achieving a reasonable deal in
difficult circumstances. The GHP will be inviting comments via its website
until November, when the consultation period ends.
The consultation document (see full
proposal document) is
online.
Similar proposals
are being
consulted
on
in Scotland and Northern Ireland. |
Hospital Pharmacist