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Latest NewsPay & benefitsPensions

NHS defends new cap on employer pensions costs

by Personnel Today 9 Aug 2006
by Personnel Today 9 Aug 2006

The organisation representing NHS employers has denied claims that a new pensions deal will mean the NHS pensions bill continues to rise sharply.

The deal, struck last week following three years of negotiations with staff representatives, proposes retaining a retirement age of 60 for existing members of the scheme and keeping a final salary pension for existing and new staff. New members will have to work to age 65 to claim a full pension.

Employer contribution rates will be capped at current levels, transferring more liability for funding pensions to employees.

CBI deputy director-­general John Cridland said the changes would not prevent the NHS pensions bill to taxpayers rocketing, with the public sector pension deficit already standing at £960bn.

But Tim Sands, pension scheme project manager at NHS Employers, said: “The NHS pension scheme is paid for by both employers and staff.

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“By capping employer contributions, and transferring some of the risk to employees, the issues of cost will be addressed.”

Full details of NHS pension deal




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Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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