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NHS Pensions Strategy

NHS Pensions Strategy. Agreed in 2008. A 1995 and 2008 section Tiered and progressive contribution rates Employer cap of 14% on contributions Cost sharing arrangements No need for change All savings and revenue from reforms going to HMT to repay national budget deficit.

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NHS Pensions Strategy

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  1. NHS Pensions Strategy

  2. Agreed in 2008 • A 1995 and 2008 section • Tiered and progressive contribution rates • Employer cap of 14% on contributions • Cost sharing arrangements • No need for change • All savings and revenue from reforms going to HMT to repay national budget deficit

  3. Contribution Increases

  4. Proposed Contribution Increases

  5. Paying More • Increased contributions to 2015 • Average contributions will be 9.8% previously 6.6% • Future employer contribution • Tiered contributions in CARE • Ongoing public sector pay restraint

  6. Working Longer • Current NHS retirement ages 55/60/65 • 2015 Normal Pension Age equal to State Pension Age • State Pension Age set to rise to 68 and beyond • Uniformed services not linked to state pension age

  7. Getting Less • Indexation of NHS Scheme changed from RPI to CPI • CPI lower than RPI • Future predictions of CPI at 1.2% less than RPI • Overall benefits reduced by 15%

  8. CARE Scheme • Accrual rate 1/54th • Revaluation set at CPI plus 1.5% • No automatic lump sum • Lower benefits than final salary for career progression

  9. Protection • Full Protection for members within 10 Years of Normal Pension Age • Tapered Protection for a further 3.5 years • Opting out of protection for 2008 Section members • 25 Year Guarantee

  10. Further Talks • Fair Deal and Access to the NHS scheme • Working Longer Review Group • Contributions • 2nd Choice 1995 Section • Opt outs • NHS Scotland Pension Talks

  11. Defend Your Pension • Working Longer • Higher Contributions • Lower Benefits • All income and savings from reforms going to HMT • Calculate your benefit on the pensions calculator at www.unitetheunion.org/health

  12. Consultative Ballot • Member Ballot closed 19th March • 94% member rejection • NHS Unions Consultation • Public Sector Unions Consultation • Day of Action 10th May

  13. Other Challenges • Pay Freeze • Regional Pay • Agenda for Change • NRRP and On Call • Health and Social Care Act • Cuts and Reorganisation • Employment Rights

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