Helen Jaques: NHS pensions: the saga continues
21 Dec, 11 | by BMJ Group
One story has dominated my first year as news reporter for BMJ Careers: pensions. And what a compelling story it has been.
The issue kicked off way back in March this year when Lord Hutton set out a raft of changes to public sector pensions, which included ending final salary schemes in favour of career average schemes, increasing the normal retirement age in line with stage pension age (due to creep up to 68 in the next 35 years), and increasing the amount employees pay into their pensions. Come summer the government gave the green light to Lord Hutton’s proposals and set out the details of the contribution increases for 2012-13. It has however remained tight lipped on increases planned for 2013-14 and 2014-15, which could bring the total increase in contributions up to 3.2 percentage points for high earners such as doctors. These suggestions were met with fury from the BMA, which said that doctors were being asked to pay more and work longer for a worse pension. It has also pointed out that the NHS scheme has already undergone an overhaul in 2008 and is filling the treasury’s coffers to the tune of £10.7 billion over the next five years rather than depleting stocks. more…
