Recently in RD we described Government plans to force through increases in retirement age in the public sector pension schemes. The implementation of these plans was to be subject to a Review of the NHS Scheme involving employer and employee representatives.
The NHS Confederation has been asked to co-ordinate the Review, which will cover the whole basis and structure of the Scheme, under a ‘Modernisation’ banner.
Amicus has now met with the Confederation to discuss the nature of the Review i.e. how it will operate, what it will consider and what its timescale is.
Central to the Review is a Steering Group with 50:50 employer and trade union representation. Sitting on top of that is a larger Reference Group also with union representation and below it a project team from the Confederation and Pensions Agency.
The first stage of the Review process is a collection of idea and options during this summer - this moves into detailed evaluation of these proposals at the end of the year - then in spring/summer 2004 into agreement on proposals and final options - followed in the autumn by formal consultation on the proposals with implementation planned for April 2005
As regards the scope of the Review we have been advised that the remit does not extend to any departure from a defined benefit pension and that there is no intention to reduce employer contributions but only to stop them increasing on account of members living longer. It is envisaged that the raising of the pension age would provide some money which would allow some desirable improvements to be made. Consideration would extend to a possible 'new scheme' as well as to amendment of the 'old scheme'
The Reviews terms of reference is to plan the implementation of the higher retirement age and not to discuss the principle of it.
The question of the higher retirement age and the Review has been the subject of a meeting of NHS trade unions. It has been agreed that we will participate in the Review, and promote our own Agenda for improvements in the Scheme as well as seeking to mitigate the effects of any increase in retirement age. The Unions will also explore in discussion with other public sector unions how best to resist the Government policy on increasing retirement ages.
Attached to this RD (actually RepsDirect193) is a document which summarises improvements which Amicus and the other health service unions have in recent years identified as being desirable. These will be carried forward into the Review. Any comments or suggestions in relation to this list can be sent to Bryan Freake Amicus MSF Pensions Officer (bryan.freake@amicus-m.org)