Pensions: Final salary scheme agreed
 The NHS pension is to remain a final salary scheme in England and Wales, according to a deal struck by SoR negotiators, the government and other trades unions.
Two new schemes will be introduced in December 2007. One will be for existing holders of an NHS pension which has the normal pension age (NPA) protected at 60, and 55 for special classes This scheme will contain a number of improvements, including survivor pensions for partners and the option to take a larger lump sum, although they will not be exempt from a rise in contribution rates.
The second scheme for new starters has an NPA of 65 and benefits include flexibility to take all or part of the pension whilst continuing to work and build up more pension.
Current holders will be allowed to choose whether they transfer their pension to the new scheme, which will give them the added benefit of a 1/60th accrual for all their scheme membership years.
Paul Bromley, pension lead for the SoR, said: “After months of tough negotiations, we are pleased that an agreement has finally been reached. Keeping the final salary scheme was one of the central issues of the campaign we ran on behalf of our members and we are pleased that the views of radiographers have been taken into account.”
The pension age for the new scheme will be set at 65, although a ‘Step Down’ option will allow people approaching retirement to reduce their hours of work but retain their pension’s value. This will be made possible through a mechanism that will select a person’s best average salary over a three year period in the last 10 years of pensionable pay.
Radiographers who earn between £15,108 and £60,880 will see their contribution rate rise from 6% to 6.5%; while those on incomes of less than £15,107 per year will see their contribution rate reduce from 6% to 5%.
Contributions from high earners will increase. Those earning more than £60,881, will pay a contribution rate of 7.5%, and those earning over £100,001 will pay a contribution rate of 8.5%.
The SoR will hold a three month long consultation (September to November) to allow members to put their views across. Comments to Paul Bromley at the Society.
Northern Ireland and Scotland will also be consulting with their scheme members, but will be working to a different timetable.
SoR pension information
Consultation document
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