DH reveals extra pensions payments

The government has unveiled the first stages of its plans for increased NHS pension contributions.

See table at foot of page for proposed increases to contribution rates by payband.

Proposals from the Department of Health would mean the majority of CSP members paying between 0.64% and 1.19% more into their pensions from April 2012.

Further, as yet unspecified, rises are due in 2013 and 2014.

An increase in contributions averaging 3.2% over three years from 2012 was first announced in the government’s comprehensive spending review in October 2010.

CSP employment relations and union services assistant director Peter Finch said: ‘The proposals have been formulated without any discussion with the unions representing NHS staff.

‘The case has not been made for the increases – they are purely part of the government deficit cutting plans.

‘CSP members have already had a cut in pensions via the change in indexation this April. With high inflation and a two-year pay freeze causing a real squeeze on living standards, NHS physiotherapy staff should not have to pay once again.’

The DH and NHS employers have only just begun negotiations with health unions about changes that could see the end of the final salary scheme in the NHS and a rise in pension age.

Mr Finch said: ‘We and other unions in the NHS have questioned the legitimacy of launching a consultation on these proposals now as we have yet to start talks on major issues like scheme reforms and pension age.

He said the CSP would work with the other NHS unions and continue negotiations on pension reforms.

‘But we know how important the NHS pension is to CSP members and are also preparing for possible industrial action should those negotiations fail.’

Proposed increases to contribution rates

full time equivalent pensionable paycontribution rate (before tax relief) 2011/12contribution rate (before tax relief) 2012/13contribution rate increase in 2012/13 (before tax relief)
up to £15,0005.0%5.0%0%
£15,001 - £21,1755.0%5.6%0.6%
£21,176 - £26,5576.5%7.1%0.6%
£26,558 - £48,9826.5%7.7%1.2%
£48,983 - £69,9316.5%8.5%2.0%
£69,932 - £110,2737.5%9.8%2.3%
over £110,2738.5%10.9%2.4%
Author
Gary Henson

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