NHS staff join protests against pension reform

13 Jan 05
Reform of public sector pensions looks set to destroy any hopes the government had of an easy ride up to the general election, with unions agreeing on a national day of campaigning next month.

14 January 2005

Reform of public sector pensions looks set to destroy any hopes the government had of an easy ride up to the general election, with unions agreeing on a national day of campaigning next month.

The latest proposals to overhaul the NHS pension scheme, the largest occupational scheme in Europe, have done nothing to allay union frustration at what they see as the erosion of pension privileges across the public sector.

February 18 has been identified as the day for TUC co-ordinated activities to highlight pension changes. General secretary Brendan Barber said the issue would not go away and warned that unions were determined to keep up the pressure on the government. 'There is enormous concern at the impact these proposals will have upon the lives of millions of public sector workers,' he said.

Options for NHS pension reform were published for consultation on January 10 but failed to win full union endorsement, despite attempts to sweeten the pill.

NHS Employers, who are leading the negotiations on behalf of the government, have not yet followed their civil service counterparts in recommending the replacement of the final salary scheme with one based on career-average earnings. Instead, views are sought on both options, and NHS Employers have stressed the genuinely open nature of the consultation.

As with the rest of the public sector, it is proposed that the NHS pensionable age be raised from 60 to 65. There are also measures to bring the scheme into line with age discrimination and civil partnership legislation.

Tim Sands, project manager of the pension review, said the NHS scheme no longer reflected modern working patterns.

It was designed around a typical male employee working for 40 years, whereas 77% of the NHS workforce was female and the average length of service just 18 years, he said.

Sands acknowledged that the higher retirement age was unlikely to be popular with the workforce, but added: 'From a management point of view, we think that an increase in the pension age is the right thing for the NHS. The demographic of the workforce is ageing and the health service faces a tight labour market.'

Amicus pensions officer Bryan Freake predicted members would reject the higher retirement age. He added that unions were sceptical that a switch to a career average scheme would produce a fairer system.

'We understand the argument in principle, but we are not convinced that the case has been demonstrated,' he said.

PFjan2005

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