10.03.11
Doctors and midwives reject pension proposals
Health unions have rejected the main findings of Lord Hutton’s review of public sector pensions.
The report recommends moving from final-salary 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 employment relations and development at the Royal College of Midwives (RCM), 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 anger and dismay and many may vote with their feet and leave the NHS. This will only serve to exacerbate the current and critical shortage of midwives and have a negative effect on the care women and babies receive.
“The NHS pension scheme, renegotiated only recently produces surpluses for the Treasury of £2 billion per year, and yet it is to be devalued. I call on the Government to think through this process and its implications very carefully, 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 arrangements.
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 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 “unacceptable” and would lead to a “mass exodus” of staff, especially doctors 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.
But Lord Hutton said: “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 average earnings will be fairer to the majority of members that do not have the high salary growth rewarded in final-salary schemes.”
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