RCN challenges ‘gold-plated’ pensions myth

Published: 06 August 2010

For immediate release: 5 August 2010

The Royal College of Nursing (RCN) today (5 August) challenged the illusion of ‘gold plated’ public sector pensions and called for a government commitment to protect existing NHS pension arrangements.

Responding to the Independent Public Sector Pensions Commission review of public sector pensions, the RCN said continued access to a good defined benefit pension scheme was vital not only for nurses but also for the economy more widely.

Challenging the general perception in public debate that NHS pensions are ‘gold-plated’, the RCN submission said that the average pension paid to a woman working in the NHS was under £4,000 per year.

RCN Executive Director of Nursing and Service Delivery, Janet Davies, said:

“Some people would have you believe that the NHS pension scheme is a drain on the public purse and overly generous. The facts are NHS staff currently contribute more into the scheme than is paid out in pensions, providing a surplus of around £2 billion to the Treasury and the average pension paid to a woman is less than £4,000 – there’s nothing ‘gold plated’ about that figure.

“The NHS scheme has already fundamentally changed, with the normal pension age for new staff increased from 60 to 65, employers’ contributions capped, and scheme members liable for any future increase in liabilities. There is no doubt that the NHS scheme is fit for purpose and the RCN is committed to defending the pensions of our members.”

In its submission to the commission, the RCN states that the answer to any disparity between pensions in sectors must be to widen the access to good defined benefit schemes in the private sector rather than remove or diminish the ones available in the public sector.

Janet Davies added:

“The wider economic advantage of so many people voluntarily saving for retirement should be supported and encouraged by society and Government. Taking this entitlement away from dedicated nurses could have a shocking impact on their welfare in later life.”

Ends

Notes to editors

For further information, interviews or illustrations please contact the RCN Press Office on 02076473633.

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.