Your NHS Pension Government Proposals

1. Your NHS Pension Government Proposals GMB PRESENTATION – 2012 Join us and fight for your pensions

2. 2 – Timetable • June 2010 – Government announce reduction to pension increases by moving from RPI to CPI • Oct 2010 – Osborne announces higher member contributions averaging an extra 3.2% per annum by 2014 • March 2011 – Lord Hutton makes proposals which have formed basis of ongoing negotiation since • August 2011 – Government start initial consultation on contribution increase in April 2012 • September 2011 – Government announce the cost envelope available for each public sector scheme/TUs announce move to industrial action • November 2011 – TUs stage industrial action/Government announces improved offer for the cost envelope • December 2011 – Government issues high level proposals for scheme benefits • Early 2012 – Further discussions on proposals to be followed by member ballot/Government announces April 2012 contribution increase • March 2012 – Government publishes final proposals

3. 3 – What will you pay? • Government has announced increased contributions for 2012 • Further increases planned for 2013 and 2014 • Contributions from 2015 unknown. Average contribution of 9.8% and unlikely to be greater spreading of costs between low and high paid than that shown. Calculator showing contributions at www.gmb.org.uk/pspc

4. 4 – NHS Pensions: The Proposal • Made up of Three Parts: • Transitional protection from change to the pension scheme for older members • Scheme Design to be introduced from April 2015, including: • Contributions • Pension Age • Career Average Pension Benefit • Other issues including Fair Deal and Review into Longer Working. Calculator showing the impact of changes at www.gmb.org.uk/pspc

5. 5 - Transitional Protection • Pension built up before April 2015 (regardless of your age) will be protected.  This pension would be calculated on the basis of your salary on retirement, not at April 2015. • Members who are within 10 years of their current Normal Pension Age at 1 April 2012 will be allowed to remain in their current pension arrangements. • Members who are between 10 and 13 years & 5 months of their NPA will be allowed to remain in their current pension scheme beyond 1 April 2015, but will switch to the new scheme at a later date (before April 2022). • Those closest to their current Normal Pension Age will benefit from the longest protection. • Members of the 2008 Section will be able to opt out of protection, as most will be better off in new scheme. • All protected members will still face new contribution structure. Calculator showing transitional protection at www.gmb.org.uk/pspc

6. 6 – Comparison of Scheme Benefits

7. 7 – Comparison of Scheme Benefits (2)

8. 8 - Other Aspects Fair Deal The policy that provides for pension protection for outsourced public sector workers. Discussions are ongoing as to how this could be retained and extended to “Any Qualified Providers”, and to allow TUPE’d staff to retain access to the NHSPS. Working Longer Review Tripartite review between DH, NHS Employers and NHS Trade Unions on addressing the impact of working longer in the NHS. Choice 1995 Section members, who are not fully protected, will be allowed to re-exercise their Pensions Choice to move to the 2008 Section.

9. 9 – So What Happens Now? • GMB Members will decide how our Union responds to this offer. • GMB’s elected members on the Health Service Advisory Bodies have unanimously voted to URGE members to REJECT the proposals. • Desire to re-engage Government in discussions around pension contributions and increasing pension age. • GMB Executive will consider the outcome of the members’ ballot, and the response from Government before deciding on the next steps. • Next steps could include protests, demonstrations and potentially further industrial action. • Now is the time to join the GMB Union and stand up for your pension. YOUR PENSION IS IMPORTANT – JOIN GMB AND VOTE TO HAVE YOUR SAY www.gmb.org.uk/pspc