It summarises the main developments around pensions and pension reforms since 2010 and signposts to more in-depth detail on our website or externally. We will continue to add to these pages whenever new information is available.
Heads of Agreement
On 20 December 2011, the Government announced a framework that will enable union executives to consider key pension changes. The Heads of Agreement will also allow local employers and trade unions to explain the changes to staff and provide reassurance on pension entitlements.
Union executives are now considering the Heads of Agreement with a view to consulting with their members early in 2012.
Read a summary of the Heads of Agreement.
Background to the public sector pension reforms
Comprehensive spending review
As part of its comprehensive spending review, which followed the 2010 Budget, the Government announced that public sector workers would be asked to contribute an average of 3.2 per cent more for their pensions, phased in over three years from April 2012.
Increased employee pension contributions
On 19 July 2011, the Government announced how it intends to proceed with plans to increase public service pensions contributions in 2012/13. Dean Royles wrote to all HR directors in the NHS in England to summarise the announcement and outline its potential impact on the NHS workforce.
Hutton report
The Independent Public Service Pensions Commission, chaired by John Hutton, was asked by the Government to undertake a fundamental structural review of public service pension provision as part of the 2010 Budget. The Commission published its final report on 10 March 2011.
On 17 June 2011, the Government announced its proposals to implement many of the recommendations in the Hutton report, which in turn would have a significant impact the NHS Pension Scheme.
Consultation
In September 2011, the NHS Employers organisation began a consultation on Department of Health proposals to increase employee contributions to the NHS Pension Scheme for 2012/13. The scheme-specific consultation was part of a wider Government consultation across all public sector pension schemes. The DH consultation closed on 21 October 2011, and the NHS Employers organisation submitted its response on behalf of employers on 28 October 2011.
On 2 November, details of the Government’s enhanced offer to employees on public service pensions were announced. Dean Royles, director of the NHS Employers organisation, said the revised offer provides the basis for further detailed discussions.
NHS Pension Choice exercise
The NHS Pension Choice exercise began in January 2010 and will run for three years, giving members of the 1995 section of the Scheme the opportunity to move to the new 2008 section.
In October 2011, as part of the ongoing Pension Choice exercise, NHS Pensions began distributing non-personalised NHS Pension Choice example statements. These were issued in circumstances where NHS Pensions believe it will not be possible to provide the member with a personalised Choice statement with sufficient time in which to make their choice.
Read our NHS Pension Scheme web pages
Read all the latest news on NHS pensions