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Home  »   Latest News   »   PDA responds to the DHSC consultation on the NHS Pension Scheme

PDA responds to the DHSC consultation on the NHS Pension Scheme

The scheme was launched in October 2021 and proposes to include basing members’ contribution rates on actual annual salaries and reducing the cross-subsidy between higher and lower earners.

Fri 21st January 2022 The PDA

The PDA represents around 7000 pharmacists working in the NHS who are eligible to join the NHS Pension Scheme. The PDA has welcomed two out of the three proposals contained in the consultation; specifically that the pension scheme member contribution rate should be based on actual annual rates of pay instead of members’ notional whole-time equivalent pay, and that the thresholds for the member contribution tiers should be increased in line with Agenda for Change pay awards.

The PDA has long supported calls to end the practice of deducting contributions from part-time workers based not on their actual earnings, but on a notional amount that they would earn had they been full-time workers. Looking at the wider pension landscape, particularly dealing with private sector companies, has led the PDA to believe this practice is unfair at best and potentially discriminatory and is not replicated in other schemes the PDA has members in.

The PDA believes that these two proposals will command widespread support among all stakeholders and it is now a matter of urgency that both issues are removed as proposed.

However, the PDA believes that it is disappointing that these important changes are linked to a proposed restructuring of contribution tiers that will see many pay more for their pension benefits. The PDA believes this proposal to be unnecessary, divisive, unpopular, and it will not therefore ensure a consensus among all NHS pension stakeholders.

To read the DHSC consultation proposal, click here.

download the full PDA response here

thumbnail of PDA response_NHS Pension Scheme_proposed changes to member contributions_FINAL (002)

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