Building a Pension

1
Building a Pension

• London
• 16th June 2004

2
Question 1

• Flexible mortgage different terms for different
  things
• 30 years to be a target if 60ths scheme. What
  about those in excess of 30 years a bonus?
• Highest 30 of 40 years should be considered
• Getting your hands on it after 30 years

3
Question 1

• Flexibility on IWL, stepping down etc let
  people decide amounts to pay in
• Pension scheme which offers core years with
  bonus for excess years no detriment for those
  that work longer
• People do currently ask how many years they need
  to work to get a full pension
• Remove ceiling of years of scheme membership (45
  years)
• New approach to AVCs more flexibility
• People to pay full time rate when working part
  time

4
Question 2

• Choice at retirement important but need to look
  at who you are and what you want from your
  pension
• Annual benefit statement to show difference in
  benefits of 80ths and 60ths
• Allow up to 25 commutation
• Employees to decide how much they want to commute
• Flexibility on AVCx
• People assume 80ths scheme worse than 60ths
  perception could help RR

5
Question 2

• Lump sum 0 25
• General agreement to allow up to 25 commutation
• Some support for increased accrual rate

6
Question 3

• Career average should be considered but need to
  see modelling
• Hard to understand by pensions people so v hard
  for employees
• Annual benefit statements
• Issue to extra cost to employers if overtime
  pensionable
• Final salary encourages people to work for longer
  in NHS

7
Question 3

• Could we have choice of career average and final
  salary scheme?
• Communications v important for scheme members
  statement would be a start (acknowledged by NHSPA
  as priority for SpHA)
• Bank staff may well be beneficial career
  average scheme

8
Question 3

• Choice most important but need to know more
  could those with career progression have choice
  to retain FS scheme
• Improved accrual rate beneficial to some but main
  issue is choice and communication
• Some groups would do well with FS scheme do
  some groups do too well?
• What will happen to existing scheme members?

9
Question4

• Where do we draw boundaries? Could this weaken
  scheme (ie staff at private hospitals, agency
  staff who have chosen to leave NHS)
• Voluntary and supply organisations should be able
  to join
• Should be quite restrictive
• Should cost for widening scheme be met by NHS ie
  PFI
• How to deal with differences in salaries between
  NHS and outside companies
• Principle of scheme is that it is there for NHS
  could be attractive recruitment tool for
  organisations outside of NHS

10
Question 4

• Any private employer should undertake to pay full
  costs not just employer costs ensure no costs
  come back to the NHS
• Not dilute marketablility of NHS
• Expand scheme any more and there would be lack of
  clarity keep as is for Directions arrangments
• How to deal with staff who have been contracted
  to work outside of NHS ie PFI. Does TUPE cover
  this enough?
• Difference between voluntary staff and those
  transferred out

11
Question 5

• Career break need to be fair individual could
  have choice to pay in their contributions on
  return and employer could pay in their
  contributions after employee been back in
  employment for say 2 years
• How would career break be affected in career
  average scheme
• Employer should not be making up employee
  contributions
• The scheme should not bear the cost

12
Question 5

• Contributions should relate to period of break
• No to BOGOF year
• Those with long service should have enhancements
• Have sliding scale for employee to make
  contributions over career break ie if they came
  back within 12 months employer would make all
  contributions
• Employer could make AVC contributions on behalf
  of employee

13

• Surprised that career break is seen as high
  priority ill health should be higher esp. for
  ambulance staff
• Low instance of staff taking career breaks
• Career breaks taken for lots of different reasons
  ie travel vs caring responsibilities
• Unpaid sick leave vs lifestyle choice which is
  voluntary break. Should the latter be supported
  by scheme?

14

• Career break not a high priority