Health worker unions are considering the government’s eleventh hour concession on public sector pension reform to stave off strikes scheduled for 30 November.
Chief Secretary to the Treasury Danny Alexander has offered TUC negotiators two sweeteners to the original deal based on Lord Hutton’s recommendations.
The government is proposing more generous accrual rates - the rate at which pensions build up in value - than previously planned and higher ‘cost ceilings’, the limit on contributions paid by the government.
The pension accrual rate would be one 60th, representing an 8% increase on the previous offer he says.
Under the new proposals, about one million public sector workers who are due to retire in the 10 years from 1 April 2012 would not have to work any longer and they would keep their existing final-salary schemes.
The offer, Alexander told MPs, was contingent on the trade unions accepting the deal as a whole and the new elements could be withdrawn if they refused.
Unions said they would continue to ballot their members on taking industrial action on 30 November, as they consider the government’s latest offer.
The BMA, which supports the day of action but will not ballot members on strike action, described it as a step in the right direction.
Dr Hamish Meldrum, chairman of BMA council, said: “It’s positive that the government has belatedly shown some response to the strength of feeling against its plans. We have made to clear to them that their original proposals were unacceptable to our members.
“What has been set out today appears to be a step in the right direction. However, it remains the case that under these plans, NHS staff will work longer and pay more, despite the fact that their pension scheme was overhauled only three years ago, and is already sustainable in the long term.
“The government’s claim that many workers will get a better deal is questionable when you take into account that they will have to work for up to eight additional years, and pay a huge amount more in contributions.
“Along with our colleagues in the other health unions, we will carefully consider the detail of this proposal, and seek the feedback of our members.”
Read the BMA’s pension brief.
Tags: Pensions
