Pensions Update
Date: 20 Dec 2011
GPs will have noted from media reports that there have been significant developments in the pension negotiations in the last few days, with some announcing that a 'deal' has been reached.
The position is that the UK government has now made its final offer to the unions. All unions, apart from Unite, have signed up to a series of Heads of Agreement, with the important caveat that the unions all wish to consult their memberships about this before any final agreement is made.
Please note that the agreement is made on the basis of the following paragraph, included at the start of the document, which states:
"This document sets out the Heads of Agreement on the scheme design for the NHS Pension Scheme to be introduced in 2015, on which talks have concluded. The government have made clear this sets out their final position on the main elements of scheme design, which unions have agreed to take to their Executives as the best that can be achieved through negotiations. Further work on the remaining details will take place in the New Year, and Executives will consult members as appropriate. This includes a commitment to suspend any further industrial action while the final details are resolved and Unions are consulting their members."
The headline features of the offer are as follows:
- Career average revalued earnings (CARE) with an accrual rate of 1/54 of salary
- Revaluation of pensionable earnings by CPI + 1.5%
- Protection on accrual and NPA for those within 10 years of NPA on 1/4/12
- Tapering protection for those within 3.5 years of the above
- NPA linked to SPA
- Contributions increased as previously described
- Retention of and improvement to 'Fair Deal'
- Commitment to hold a partnership review of the position of staff working for 'Any Qualified Providers'
The BMA, along with the other unions, has made it clear that there can be no actual agreement until the membership has been consulted. The government is taking the line that an agreement has been reached, but this cannot be concluded until the membership has had an opportunity to express its views. The BMA will therefore be surveying members in January on the final offer.
In advance of this, the BMA is undertaking a massive programme of pension related events across the UK, starting now and continuing in early January, to inform members about the proposed offer and to ensure we have the most up to date place of work details as possible, so that the Association is fully prepared for any possible developments. Details of these events are on the BMA website. Please attend if you can, and contact the BMA via their website if you would like an event to be organised in your area.