RCN Welcomes New NHS Pension Scheme Arrangements

Main Category: Nursing / Midwifery
Article Date: 21 Sep 2007 - 17:00 PDT

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As NHS Employers and trade unions announce details of the new NHS Pension scheme arrangements, the Royal College of Nursing (RCN), has expressed delight at the outcome.

Dr. Peter Carter, General Secretary of the RCN, said: "We are very pleased with the new arrangements for the NHS Pension Scheme in England and Wales. The announcement today is the culmination of four years hard work and negotiation between NHS Employers, the RCN and other healthcare trade unions.

"Over the course of the pensions review process, the RCN surveyed a number of its NHS members to find out what they wanted us to fight for. We are delighted to say that, four years on, current nurses will keep their normal pension age of 60 and both existing and new nurses will have a pension based on a final salary.

"The RCN and other trade unions representing healthcare workers set out to reach a sustainable long-term agreement with NHS Employers that would provide security in retirement for NHS nurses, hope for future NHS nurses and value for money. This agreement does all three."

Existing scheme members will:

- keep a normal pension age of 60 (or 55 for staff with special rights) and the right to take a pension after the age of 50

- keep a final salary pension with a 1/80th accrual rate and a 3/80th lump sum for each year of service based on the best of the last three years of work before the age of 60

- have a new option to take a larger lump sum, up to 25% of the value of the pension, in return for giving up some of their pension

- have survivor pensions extended to partners in addition to widows, widowers and civil partners

- be able to continue paying into their pension beyond their current normal pension age and build up their pension up to a total of 45 years regardless of age

New scheme members will have:

- a normal pension age of 65 and the right to take a pension after the age of 55

- a final salary pension with a 1/60th accrual rate for each year of service based on the average of the best three consecutive years of membership in the ten years before retirement (allowing staff to take a lower paid job in the run up to retirement but have their salary calculated on the higher salary they had before stepping down)

- the choice between converting up to 25% of the pension into a lump sum, foregoing a lump sum in favour of a larger annual pension or they can choose anything in between the two options

- a more flexible pension with the ability to take all or part of the pension while continuing to work and build up more pension

Royal College of Nursing (RCN) is the voice of nursing across the UK and is the largest professional union of nursing staff in the world. The RCN promotes the interest of nurses and patients on a wide range of issues and helps shape healthcare policy by working closely with the UK Government and other national and international institutions, trade unions, professional bodies and voluntary organisations.

>http://www.rcn.org.uk