Speech by the Chairman of the Pensions Committee
Dr Simon Fradd
Thursday 1 July 2004
The 2003/2004 session has continued to be dominated by the final negotiation and implementation of the new GMS contract.
The consultants contract has been agreed and (in the majority of trusts) implemented and whilst this has few changes in relation to pensions, the improved salaries result in directly enhancing pensions due to the nature of final salary pension schemes.
The review of the NHS Pension Scheme in England and Wales, reported to you last year, has been progressed throughout the session and doctors interests have been well served by the BMA securing seats on all the relevant discussion and negotiation groups. The review is encompassing legislative changes proposed by the Inland Revenue to simplify the taxation of pensions, and also by the Department of Work and Pensions to increase Normal Pension Age from 60 to 65. Members have made their feelings known about this latter proposal and we continue to represent this strongly to the review project team. A motion opposing this increase was passed at this years LMC Conference.
The review can be seen as a threat, but also an opportunity. The threat is that some future benefits could be reduced or removed, the opportunity is that a number of the changes we have been campaigning for some time to have included in the scheme look likely to be so, for example, spouse's pensions for unmarried and same sex partners. Some of you may be receiving survey forms to express your views and I would urge those that do to complete and return these promptly. If you do not receive a survey you can still contribute your comments directly to the NHS confederation and details are on the pensions section of the BMA website.
No final decisions on the scheme changes have been made and full consultation with the service will be made later this year, however any changes are unlikely to affect current scheme members until at least 2013 and we are trying to get this period extended.
Looking forward to the next session, it is clear that the review of pensions in England and Wales and latterly in the rest of the devolved nations will continue to be a major area of focus for the committee. Additionally, the Staff and Associate Specialist doctors are commencing negotiations for their own employment contracts and the committee (represented by the pensions department) will be actively involved in these from day one.
Final pieces of the GMS contract jigsaw will be hunted down from the back of sofas and in vacuum cleaner bags and put into place to complete the picture. No doubt in time we will wish to put it back in the box and start a new one!
A new programme of pre-retirement seminars is planned. Taking account of feedback from past attendees we have dropped the 'health in retirement' slot. Apparently, you all know about these things! The pensions department also participate in the excellent mid-career seminars jointly held with BMA Services. As one attendee commented on the feedback form, "It should be compulsory for every doctor to attend these". I had the opportunity to chair a seminar in Cambridge and they really are an excellent day. Last session the department also trialed seminars for Junior doctors and it is hoped to continue these in the future.
I leave you with this final thought.
The NHS pension scheme costs 20% of the NHS paybill to provide.
This cost is increasing as people are living longer.
People are living longer partly due to improvements in healthcare.
It is ironic that NHS staff give their working lives to making people live longer and they could have their pension benefits reduced because of this increased longevity.