GPs to net thousands after pensions victory confirmed
GPs are set to receive a pension windfall of up to 20 per cent after the Government finally agreed to honour the GMS contract deal on pensions struck in 2003.
Final dynamising factors - which uprate GPs' pensions according to average income increases each year - published today mean GPs will get a 52% increase in their pensions over the period 2003/4 to 2007/8.
Former Health Secretary Patricia Hewitt had attempted to cap GPs pensions at 48 per cent spread over the period and impose lower dynamising factors for the first three years.
The agreed dynamising figures for each year are shown in the box (left).
The biggest gainers from the agreement are GPs who retired in 2006 as they will now get the full 52% dynamising applied to their pensions. The decision will add hundreds of pounds extra per year to GPs with average pensions.
In addition a tax free lump sum of 3 times the pension, plus a lump sum making good the last 2 years, will be payable.
For those not yet retired it means an extra 2 years of dynamising will now take place and the overall figure is 4% higher than the Government's 'imposed' deal.
Dr Richard Vautrey, GPC deputy chair said: 'It's good news for all doctors, but particularly for those who have retired'.
Dr Vautrey added that the money should be received 'By the first quarter of 09'.
'It's in the Government's interest to get it done as soon as possible.'
Although dynamising factors for 2006/7 and 2007/8 are set 1, indicating no rise, the BMA said earnings figures for GPs showed a fall in GPs' net profit in 2006/07 and it assumed this would also be the case for 2007/08 so this figure could have been negative.
The dynamising factor from 2008/09 onwards will be based on RPI +1.5%.Monday Pension dynamising factors