Health service pension shake-up by Finance News Bulletin

Published: 17/01/07

More than 13 million health workers are to see the height of their pension contributions change as part of a plan to wrap a cash and payout shortfallUnder the changes, porters, cleaners and other poorly paid health service workers in England and Wales will have their pension contributions slashCurrent National Health Service (NHS) employees will keep a retirement age of 60, while for new staff it will rise to 65

The tactics are due to come into effect at the end of next year after trade unions have consulted their membersFaced with a larger, big population the UK is having to redraw many of its public sector and condition pension plansThe government has proposed raising the condition pension age to 68 from 2044 and it has made changes to the civil service systemNo one should be under the impression that these modest changes will stop the NHS pensions bill rocketing for taxpayersChair of the NHS Employers pensions negotiating team David Jordison said the statement marked the end of a three-year process that aimed to find a retirement fund scheme that was "sustainable and affordable"

Under the terms of the plans, alive members of the health service pension system in England and Wales will still be able to retire at 60 and also retain the correct to take a pension after the age of 50Importantly they will retain their final-salary retirement fund scheme and have an option to take a larger bump sum on retirement in homecoming for lower monthly pension paymentsAlthough staff that join the scheme after the changes take effect will have to give up work at 65, they will still be in a final-salary schemeBeverly Malone, general secretary of the regal College of Nursing, said that the final-salary system was an important tool in attracting and retaining staff

"No one should be under the impression that these self-effacing changes will prevent the NHS pensions bill rocketing for taxpayers," supposed John Cridland, deputy director-general of the CBI business group"Increasing staff contributions is a step in the correct way but the settlement falls short of what's needed to undertake the looming crisis in long-term public sector pension provision," he addedAnnuity reform Women 1 Women 2 retirement fund rights Divorce labour pensions Lump sums Pension Credit Frozen pensions Shortfalls Overseas pension Small pensions duty and pensions Pension repair Made simpleState pension With-profits last salary Money purchase Annuities Serps State Second

Visit original article: