Nurses fear the worst over pension reforms
Published: 23 December 2010
The Royal College of Nursing (RCN) today warned that many nurses in the NHS fear the worst over proposed pension reforms with some workers intending to retire early in order to protect their pension.
Submitting evidence to the final report of the Independent Public Service Pensions Commission, the RCN expressed concern that the recommendations may mean that nurses will have to work longer, pay more and receive less than expected in their pensions.
Dr Peter Carter, RCN Chief Executive & General Secretary, said:
“There have already been fundamental changes to the NHS Pension scheme, which the RCN has supported. These include an increase in contributions where the highest earners pay most, an increase in the pension age for new entrants, and protection for the tax-payer against any increased liabilities. There is no doubt that the NHS scheme is fit for purpose.
“However, the current uncertainty means many nurses are finding it increasingly difficult to understand what their pension arrangements might be. We are concerned at the direction of travel which would mean that members would have to work longer and receive less than expected. This is on top of a two year pay freeze, a proposal to freeze annual pay increments and greater workloads as staff are not replaced. NHS workers are quite clearly already carrying a heavy financial burden in this age of austerity.”
Dr Carter added:
“The move to increase pensions by the Consumer Price Index rather the Retail Price Index is simply a crude attempt to reduce costs. It ensures that those in retirement will receive less than they legitimately expected when they entered the scheme, potentially increasing pensioner poverty. We are also hearing reports that nurses intend to retire as soon as possible to protect their pension and frankly who could blame them?”
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Notes for Editors
1.For further information, interviews or illustrations please contact the RCN Media Office on 0207 647 3633, press.office@rcn.org.uk or visit http://www.rcn.org.uk/newsevents/media
2. The 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 organizations
3. At the RCN’s 2010 Congress, members overwhelmingly passed the resolution That this meeting of RCN Congress urges Council to publicly defend NHS pensions and challenge the illusion of the gold-plated pension scheme for public sector workers.