New pensions offer is on the table and set to be examined
Midwives magazine: Issue 7 :: 2011
After months of intense negotiations, the government has put a new, improved pensions offer on the table.
It includes a better accrual rate (1/60, rather than 1/65) and transitional protection for those within ten years of retirement age on 1 April 2012.
It also proposes a long-term commitment to any agreed reforms for 25 years, but this is subject to negotiations.
Jon Skewes, RCM director of employment relations and development, said the offer will be examined in detail.
‘The RCM has welcomed further proposals by the government on public sector pensions,’ he said.
‘We will continue to engage in NHS scheme specific negotiations to determine how these principles can be implemented alongside other issues which remain outstanding, such as increases in retirement ages, contribution rates and indexation of pensions in payment.’
While the RCM has welcomed the improved accrual rate and transitional protection, it wants to ensure that retirement age includes special class status.
Danny Alexander, chief secretary to the treasury, said the offer is an improvement of 8% on the previous offer and called it ‘an affordable deal’.
This, and other government calculations, will be scrutinised by the NHS trade unions to ensure they are accurate and compare like with like.
The government has indicated it will still not negotiate on the change from increasing pensions in line with Retail Price Index inflation to using the lower Consumer Price Index measure of inflation.
It has also refused to shift on the increase in pension contributions in 2012 and is still indicating that there will be further contribution increases in 2013 and 2014.
The government is also still pushing for the final salary scheme to be replaced with a career average scheme and for normal retirement age to be linked to state pension age, for those not within ten years of their retirement age.
The RCM is concerned that if the retirement age is linked with state pension age, midwives and maternity support workers will be working on busy labour wards at the age of 68, or even later.
