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.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

Email(Required)

OptOut

From time to time, we will send you emails about selected products, events and services from Personnel Today and OHW+ - but you can choose to opt-out at any time. If you do not wish to receive these emails, please tick this box.

Comments

This field is for validation purposes and should be left unchanged.

Δ

“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