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Headline

BMA in talks over who will foot bill for pensions contributions hike from 2020

Comment

This is welcome news for one year- but the whole uplift thing seems to be to be as scam. The SCAPE discount rate -a complex fudge mechanism set by the treasury, was set up to compare the value of a state backed scheme (without a fund) like the NHS, with a private invested pension fund. This is just a notional comparison that was supposed to be reviewed 5 yrly. If interest rates drop, a private pension fund returns might drop, and so the amount needed to obtain the same pension goes up. The NHS scheme was said to be in surplus when employers contributions were set at 7%. This should be even more so (so long as members haven't all left). So there is no need to keep reducing or applying the SCAPE discount rate, which was reduced 2 years ago. It would appear to be being used as a clever way of seeming to invest more in the NHS, but extracting it back our of trust in the form of NHS employers contributions. Usual smoke and mirrors stuff. If this is extracted in 2021, it could wipe out most of the gains of the new contract review. The balancing agreement needs to take this into account- i.e. should be two way.

Posted date

05 Mar 2019

Posted time

4:31pm

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