27 January 2023
If you are covering the delay to the implementation of some partial retirement rules in the NHS and its impact on healthcare professional retention, please see the following comment from Graham Crossley, NHS pensions expert at Quilter:
"A policy set out by the government last year, designed to help stem the flow of senior healthcare professionals leaving the profession, has been delayed by six months. Plans for so called "partial retirement" which gave members of the NHS pension scheme the ability to continue employment while drawing benefits from the 1995 pension scheme and continuing pensioned employment in the 2015 scheme were announced last April. However, despite the NHS creaking under significant pressure, government has scored a massive own goal by deferring this policy to October later this year. The consultation on this policy is yet to even close but delays are already announced.
"While six months might seem like an inconsequential amount of time to some, many members were looking forward to this policy so that they could transition their retirement gradually, easing their workload but still continuing to work without having to renegotiate potentially less favourable terms of employment. Unfortunately, the delays to this policy might represent a bridge too far with some members looking to throw in the towel and take full retirement. Due to the huge inflation this country has witnessed over this last year, paltry wage increases and punitive pension tax laws many members have to weigh up a tricky decision about whether it makes financial sense to keep working.
"Last year, it has emerged following an FOI submitted by us, that April 2022 saw a record number of pension benefits being awarded to NHS staff, indicating a significant jump in those retiring. The delays to this policy may cause a repeat of this. April 2022 saw 8,902 pension awards compared to just 6,932 in April 2021, a year-on-year increase of 28% piling yet more pressure on the NHS as it emerged from the pandemic."
