New deal on pensions for NHS staff
Details of the new NHS pension scheme have been announced by NHS Employers. The final agreement has been reached after a four-year review conducted with health care trade unions, the NHS Pension Scheme and the Department of Health.
Key features of the new scheme include:
• A final salary scheme with an accrual rate of 1/60th for each year
of service
• A normal pension age of 65
• A lower contribution rate for the lowest paid staff, while the highest
paid staff will pay an additional 1.5 to 2.5 per cent on their
contribution rate
• A larger contribution rate for the majority of staff, increased by
0.5 per cent to 6.5 per cent
• Calculation of the final salary by averaging the highest paid three
consecutive years
during the last 10, allowing members to reduce their
workload in the final years before retirement without reducing their
pension
• No mandatory lump sum on retirement, but the option to take up to 25
per cent of the pension as a lump sum, with annual pensions adjusted
accordingly
• Survivor pension rights extended to non-married partners
• The flexibility to take all or part of the pension while continuing
to work and build up more pension
Existing staff can remain on the old scheme, or accept a one-off opportunity
to join the new scheme, which will become mandatory for all staff joining
the NHS after 1 April 2008.
Anthony Oxley, president of the Guild of Healthcare Pharmacists said: “This
is a very good piece of negotiating by the NHS unions. However we urge
existing members to read the final details when they become available
and consider their own situation before deciding which scheme is best
for them.” |
Hospital
Pharmacist