In November last year, the PDA responded to the government consultation on potential changes to the NHS Pension Scheme. The details of the PDA’s response can be found here.
As a result of the points made by the PDA, the government has decided to withdraw its proposal to freeze the point at which the highest contribution rate is paid and to increase all points at which higher contribution rates kick in with either CPI or the value of each year’s NHS pension increase, whichever is the higher. The full government response can be found here.
Paul Moloney, PDA National Officer, explains the importance of this to PDA members employed in the NHS. Paul says, “This decision by government is very welcome and we are particularly pleased that their response mentions the PDA submission on several occasions. There is also confirmation that we will also now automatically be included in any other consultation on the NHS Pension Scheme.
We had been particularly concerned that the proposal to freeze the point at which the highest contribution rates is paid would have seen more of our members fall into a situation where as their income rises, but the higher contribution trigger point remained the same, their take home pay could be adversely affected.
As members would expect we made an evidence-based submission that showed that had the original proposal been adopted then our members in Band 8a would have been paying the highest contribution rate after two years of 4% pay increases and those in Band 7 after 4 years.
By speaking up for pharmacists in the NHS we have persuaded government their proposal would have serious adverse consequences for all NHS workers in higher bands.”
PDA members are encouraged to read the original government proposals, the PDA’s submission and the government’s subsequent response and decision.
Several other changes will be enacted following the consultation. A significant relevance to pharmacists is the decision to increase all the higher contribution points by CPI or the NHS pay increase if higher.
Paul added, “This represents an important U-turn by government and means our members should never again move into a higher contribution rate simply because of a pay increase, but only now if promotion takes them into the higher earning bracket.
Overall, this shows making evidenced based argument can still influence decision makers and certainly shows the benefit of pharmacists in the NHS having an independent trade union dedicated only to representing their interests.”
Learn more
- PDA responds to the latest NHS pension proposals
- Government response to the NHS Pension Scheme: member contributions phase 2 and miscellaneous amendments consultation
Not yet a PDA member?
If you have not yet joined the PDA, we encourage you to join today and ask your colleagues to do the same.
Membership is FREE to pharmacy students, trainee pharmacists and for the first three months of being newly qualified.
Read about our key member benefits here.