NHS defends new cap on employer pensions costs

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.

“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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