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Latest NewsPay & benefitsPensions

Pension reforms speed up public sector changes

by Personnel Today 18 Jan 2005
by Personnel Today 18 Jan 2005

Proposed changes to NHS pensions signal an acceleration of government moves to end final salary schemes in the public sector, according to experts.

Last week the NHS announced plans to switch to a career average earnings scheme and raise retirement age from 60 to 65 for health service workers.

If implemented, the changes would apply to new employees from 6 April 2006.

The moves follow plans unveiled last month detailing the reform of civil servant pensions.

Pensions experts from unions representing NHS workers have expressed scepticism about career average schemes, even though they tend to benefit lower-paid workers.

They argue the plans are a money saving measure and not about making the system fairer.

Orlando Harvey-Wood, a partner in the pensions practice at consultancy Deloitte, said the plans fell between the two.

“The Government is now reacting like companies in the private sector by moving away from final salary schemes.

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“Raising the retirement age will make some savings, but the majority of workers won’t be worse off.”

Ministers are expected to make a final decision in the summer.


Personnel Today

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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