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Department of Health unveils reforms to NHS pensions

24 September 2007

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Reforms to the NHS pension system will see some highly-paid doctors contribute more, while porters and cleaners will pay less, the government has announced.

But the Department of Health has confirmed that all NHS staff in England and Wales will keep their final salary pension schemes under the new arrangements.

Staff joining from April next year will retire at 65, while existing staff will still be able to retire at 60.

Health minister Ben Bradshaw said: “NHS Employers and NHS trade unions have done an excellent job of listening to both staff and employers.

“The new NHS Pensions Scheme strikes the right balance between the security that staff deserve in their retirement and affordability for the taxpayer.

“The existing scheme has provided well for staff, but has changed little over the past 60 years. It is right that we recognise the vast shift in working patterns since the 1940s, the reform of the tax regime for pensions in recent years, and changes to employment legislation.

“The new arrangements will give staff more control over how they save for their retirement, as well as how and when they retire, whilst managing costs.”

Department of Health

Copyright © PA Business 2007

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