31 / 7 / 2013 10.43am
Her Majesty's Treasury recently circulated a consultation paper on draft directions to recalculate the value of public sector pensions.
NHS Employers welcomed the opportunity to provide comments on the draft proposal. We appreciate that these are draft directions but, if unchanged, the additional costs of around £1.7 billion from 2015, calculated by independent actuaries, would be unaffordable for the NHS.
We know many staff are anxious about their pensions. An employer increase of this magnitude could destabilise the national arrangements that have only recently been agreed to take forward the Hutton proposals for public sector pensions.
What will this mean for the NHS
We feel that if nothing is done to amend the valuation directions, the contribution increases which will be implemented from 1 April 2015 will severely influence the running of the NHS and have a significant negative impact on service delivery and patient care. Many patient services would be affected and staff job losses would be inevitable. This would clearly need to be reflected in the spending review.
We need serious, constructive debate at this early stage to put this pension change in perspective. NHS Employers will be putting the case forward strongly for employers to highlight why these draft proposals need to change radically, believing this is also what's right for our staff and our patients.
Find out more
Our full response to Her Majesty's Treasury’s(“HMT”) consultation on draft directions titled “The Public Service Pensions (Valuations and Employer Cost Cap) Directions 2013 is now available.