NEWS
Health unions have rejected the main findings of a review of public sector pensions.
The report, produced by former Labour secretary of state for work and pensions John Hutton, rec- ommends moving from final-sal- ary to average-earnings based schemes, a rise in the normal pensionable age, and an increase to contributions, to try to reduce the “unsustainable” costs of the current system because of the ageing population.
But Jon Skewes, director of em- ployment relations and develop- ment at the Royal College of Mid- wives, said: “The RCM believes that its members will be appalled by this government’s attack on their hard-earned pensions.
“On top of pay freezes, cuts to services and threats to the NHS itself, this will be seen as a slap in the face for hard-pressed midwives and maternity support workers. They will react with an- ger and dismay and many may
vote with their feet and leave the NHS. This will only serve to ex- acerbate the current and critical shortage of midwives and have a negative effect on the care wom- en and babies receive.
“The NHS pension scheme, rene- gotiated only recently, produces surpluses for the Treasury of £2 billion per year, and yet it is to be devalued. I call on the Govern- ment to think through this proc- ess and its implications very care- fully, because they do not appear to have done this so far.”
He noted recent reforms to the NHS scheme, which saw the ‘normal pension age’ raised from 60 to 65, the introduction of tiered contributions for higher earners and new cap and share arrange- ments. The average NHS pension is “just £7,000 a year”, with over half of women getting “less than £3,500 a year”, he said.
The BMA also pointed out that many of Lord Hutton’s recommendations already apply
Lord Hutton
in the NHS, and that its pension scheme is in a “very strong funding position”.
It said raising again the normal pension age would be “unaccept- able” and would lead to a “mass exodus” of staff, especially doc- tors in their fifties. It rejects an end to the final salary scheme, and said lower-paid workers could opt out of the NHS pension scheme if contributions are raised.
Peter Finch, assistant director of employment relations and union services at the Chartered Society
of Physiotherapy, said: “Hutton has accepted the widely held, but unsubstantiated, view that the country cannot afford a de- cent level of pension provision. The CSP has grave concerns at what can only be described as a piecemeal approach to pensions by the government and that the serious decisions have already been taken on the future of public sector pension provision affect- ing the lives of thousands of CSP members.”
But Lord Hutton argued: “These proposals aim to strike a balanced deal between public service workers and the taxpayer.
“They will ensure that public service workers continue to have access to good pensions, while taxpayers benefit from greater control over their costs.
“Pensions based on career aver- age earnings will be fairer to the majority of members that do not have the high salary growth re- warded in final-salary schemes.”
national health executive Mar/Apr 11 | 9
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