5 December 2022
If you are covering the DHSC consultation on amending NHS pension regulation, please see the following analysis from Graham Crossley, NHS pension expert at Quilter:
"The industry has been crying out for change to address the problems with the NHS pension system and today’s consultation is underwhelming. On the face of it introducing flexible retirement options for those in the 1995 scheme is positive but the conditions for accessing those new options such as drawdown abatement and the eligibility requirement of a 10% reduction in pay or a 10% reduction in capacity for GPs is nonsensical. There are huge waiting lists throughout the NHS, so forcing a reduction in capacity on doctors who might be more than happy to continue to working at 100% is an odd decision by the DHSC.
"It’s clear the changes being tabled are trying to help ease a severe problem but they have fallen short of properly addressing it and may serve to add additional layers of complexity to an already devilishly complex system and put members off.
"There are also some missed opportunities in this consultation which could have made a bigger and more significant impact. The problems associated with inflation and the NHS pension scheme are complicated but ultimately could prove disastrous for even moderate earners in the health service. There are attempts to fix this ‘CPI disconnect’ by moving revaluation dates to 6th April, but these changes fail to address negative growth. There is little announced that will help mid-career healthcare workers who could continue to face significant annual allowance charges and reduce their hours as a result."
