The BMA has vowed at its annual representatives meeting to protect doctors’ pension scheme as a government commission starts examining the reform of public sector pensions.
Chancellor George Osborne announced a review of public sector pensions during the Emergency Budget, and is believed to be keen to extend the retirement age to 66 by 2016.
Dr Mark Porter, chair of the BMA’s consultants committee, called on the government to stand by the pension agreement reached in 2008.
In that agreement, higher earners pay more into their pensions and employers’ contributions will be capped at 14% of pensionable earnings.
Porter said that in recent years the NHS pension scheme has paid surpluses to the Treasury.
“The incomings of the pension scheme are now fixed with a two-year pay freeze. The outgoings are not fixed - over those two years the pension payments will rise in line with the cost and prices index, expected by the Treasury to be a 4% increase in those two years. So, incomings are static, and outgoings are rising.
“Let’s be clear - the greatest threat to the stability of the pension scheme is the government itself.”
The BMA’s strong stance follows rumours that the government is considering charging higher earning public sector professionals a one-off levy - of between £10,000 and £20,000 - to maintain their pension benefits. Trust chief executives are currently seeking advice on its implications.
The BMA feels that the NHS pension is in a strong position relative to other public sector pension schemes, such as the civil service and military, which have earlier retirement ages and lower employee contributions.
Dr Hamish Meldrum, chair of BMA council, was equally uncompromising on the issue of pensions.
“Only two years ago, we reached agreement which raised the age of retirement to 65, capped the contributions of the government, increased contributions by the higher paid and put the NHS scheme on a sensible and affordable footing for the future.
“I am not someone who easily resorts to threats, but I warn the government - in a spirit of cooperation and being helpful - if you really want a crisis in the NHS, start meddling with the NHS pension scheme.”
In the Emergency Budget, Osborne also announced that doctors would not receive a pay rise in the next two years.
Tags: Pensions
Consultants have not received a pay rise this year so effectively we are facin a 3 year pay freeze (wage cut). so I think major changes to our pension would not be warmly received!
This Govt by fair or foul means seems determined to get money by all means and from all means. This suspected raid on our hard-earned pensions must be stopped and we through the BMA must be prepared to slug it out with the Govt by any and all means necessary to stop that happening. All Govts appear to treat Doctors and NHS workers as soft targets to be used as punching bags as required. This is the time and issue on which we must say ‘enough is enough’! If they want a crisis let’s give it to them in good measure.
There is a general move to vilify public sector pensions in the press as being protected and not therefore subject to the difficulties that private sector pensionholders are facing. It would be counterproductive for the medical profession to take a strong public stand on the issue as the spin on the headlines will fit with the negative press view supported by the DOH. We should therefore perhaps concentrate on the differences in pension benefits between health workers and civil service, military and police and fire services where health workers appear to be the losers. The aim should be to put us at the bottom of the list for claw back.