NHS Pensions Strategy Agreed in 2008 A 1995 and 2008 section - PowerPoint PPT Presentation

NHS Pensions Strategy

Agreed in 2008 • A 1995 and 2008 section • Tiered and progressive contribution rates • Employer cap of 14% on contributions • Cost sharing arrangements • No need for change • All savings and revenue from reforms going to HMT to repay national budget deficit

Contribution Increases Full time equivalent Contribution rate 2011 Contribution rate pensionable pay to 2012 2012 to 2013 Up to £15000 5.0% 5.0% £15000 to £21175 5.0% 5.0% £21176 to £26557 6.5% 6.5% £26558 to £48982 6.5% 8.0% £48983 to £69931 6.5% 8.9% £69932 to £110273 7.5% 9.9% Over £110274 8.5% 10.9%

Proposed Contribution Increases Full time Equivalent Proposed rate 2013 to Proposed rate 2014 pensionable pay 2014 to 2015 Up to £15000 5.0% 5.0% £15000 to £21175 5.3% 5.6% £21176 to £26557 6.8% 7.1% £26558 to £48982 9.0% 9.3% £48983 to £69931 11.3% 12.5% £69932 to £110273 12.3% 13.5% Over £110274 13.3% 14.5%

Paying More • Increased contributions to 2015 • Average contributions will be 9.8% previously 6.6% • Future employer contribution • Tiered contributions in CARE • Ongoing public sector pay restraint

Working Longer • Current NHS retirement ages 55/60/65 • 2015 Normal Pension Age equal to State Pension Age • State Pension Age set to rise to 68 and beyond • Uniformed services not linked to state pension age

Getting Less • Indexation of NHS Scheme changed from RPI to CPI • CPI lower than RPI • Future predictions of CPI at 1.2% less than RPI • Overall benefits reduced by 15%

CARE Scheme • Accrual rate 1/54 th • Revaluation set at CPI plus 1.5% • No automatic lump sum • Lower benefits than final salary for career progression

Protection • Full Protection for members within 10 Years of Normal Pension Age • Tapered Protection for a further 3.5 years • Opting out of protection for 2008 Section members • 25 Year Guarantee

Further Talks • Fair Deal and Access to the NHS scheme • Working Longer Review Group • Contributions • 2 nd Choice 1995 Section • Opt outs • NHS Scotland Pension Talks

Defend Your Pension • Working Longer • Higher Contributions • Lower Benefits • All income and savings from reforms going to HMT • Calculate your benefit on the pensions calculator at www.unitetheunion.org/health

Consultative Ballot • Member Ballot closed 19 th March • 94% member rejection • NHS Unions Consultation • Public Sector Unions Consultation • Day of Action 10 th May

Other Challenges • Pay Freeze • Regional Pay • Agenda for Change • NRRP and On Call • Health and Social Care Act • Cuts and Reorganisation • Employment Rights