NHS Pension (Sorry)

That's a bit harsh on the new employer isn't it - shouldn't the NHS pick up the tab for the enhancement if the right to it already existed?

Anyway the employer will begin to save as it takes on new staff at a more typical private sector pension.

It will, but it depends on the size and nature of the service as to how much they'll get hit.

It's the single most restrictive area for private sector bidders for NHS contracts (where TUPE implications are apparent).

Well the issue is not isolated to the pension provision (and actually, you can't provide an exact replica of the NHS pension). In addition to that, you have the other T&Cs, such as redundancy payments (1 month for every year you have worked in the NHS), which again doesn't compare to that available to private sector.

Is that unchangeable though? My BIL and his wife as NHS managers got that - at least his wife did but she was in one of the first wave of redundancies. There was a national outcry about how much it was costing and the service enhancements were watered down on a rapidly sliding scale. My BIL's redundancy (forced, he didn't want to leave) was delayed so they could pay him less.

I think the OP asked whether or not to stay in the pension scheme. I am one fortunate enough to have drawn such a pension. There is no doubt that the scheme has been one of the best but the benefits have been scaled down and the contributions have increased. The problem is that unlike other (mostly private) schemes the contributions are not invested in the traditional way so the risk is whether or not the government (now and in the future) can and will continue to honour its commitments. In the current economic climate there is concern that it might reduce payments - it all depends on your assessment of the financial mess and whether you see sustained growth in the future. This is one of the reasons why the retirement age has been increased - more workers to support the growing ageing population. A paradox that we continue to pay huge amounts to cheat death yet cant afford to pay for the consequences.

Your scheme may be getting worse, but public sector pensions are a race to the bottom at the moment.

(Well, not MPs pensions)

The private sector got to the bottom a while ago.

Have to point out re: an earlier post, whilst public sector pensions are paid for by the tax paying public, private pensions are paid for by... the private sector consuming public - who are pretty much the same people.

So I'm paying British Gas pensions, Tesco pensions, and so on, ad ifinitum.


Everything has to be paid for by someone.


I think its right that public sector employers still make sure members have a credible (if reducing) scheme available to fund their old age, as i) the state pension will get you fxxx all in 30 years time, and ii) it will be public institutions that will be expected to step up and tackle the elderly poverty that is coming for those who've not though about their pension, so they might as well make sure a few less people will be queuing for state support.

Ian