A less rosy view of NHS pension contributions
From Dr Martin Atkinson, Yoxall, Staffordshire
Please could you be more critical of articles such as
the one written by Shane
Stack on the merits of
NHS pensions (Finance,
The contribution cost
of the NHS pension scheme
is no longer as rosy and
simple as Mr Stack would have us believe.
He says: 'You pay 6 per cent of earnings [net cost 3.6 per cent] and the NHS pays 14 per cent...'
Only a limited proportion
of GP income enjoys this hereditary status and soon the 6 per cent will become 8 per cent for higher earners (a lot of us, apparently!).
We have to contribute
the employer contribution
of 14 per cent as well on all 'non-legacy' income and of course some of us had contracted to pay added years contributions before GMS2 started.
This means that it is not unusual for some GPs to be liable for contributions at
24-25 per cent on a good part
of their income and some of these GPs are not young enough to have the contributions capped.
This produces a very complicated scenario that
was obviously unforeseen by our contract negotiators.
By the way, a very small proportion of GPs will be set
to retire on a pension of £66,000 a year – less likely if the Department of Health has its way over uprating factors, so most of us can relax about breaching the pension pot limits!