1. From A BMA Perspective Pay and Pensions From A BMA Perspective Dr Cait Searl Consultant Cardiothoracic Anaesthetist / Intensivist Newcastle upon Tyne Hospitals NHS Foundation Trust

2. Remit Pay CEAs / distinction awards Pensions Questions for you

3. Pay freeze

4. PAY FREEZE DDRB – current round of evidence in progress -Relative position of doctors -Morale / Motivation

5. PAY Foundation trusts & national T&Cs - incremental pay progression - sickness entitlements - extending working day - study leave expenses / time - SPAs ………

6. PAY Pay freeze Foundation trusts & national T&Cs - incremental pay progression - sickness entitlements - extending working day - study leave expenses - SPAs Scotland

7. CEAs / Distinction / Discretionary points Merit Awards review ? ? ?

9. Pensions

10. Pension time line 1948NHS Pension scheme starts 1991Scheme opened to part time staff 1995Early retirement changes 2008New Scheme Implemented March 2010Hutton Review - Increase normal retirement age - Move from final salary to CARE (career average revalued earnings)

11. Pension time line 1948NHS Pension scheme starts 1991Scheme opened to part time staff 1995Early retirement changes 2008New Scheme Implemented March 2010Hutton Review April 2011Switch from RPI to CPI

12. Pension time line 1948NHS Pension scheme starts 1991Scheme opened to part time staff 1995Early retirement changes ted 2008New Scheme Implemented March 2010Hutton Review April 2011Switch from RPI to CPI July2011‘Consultation’ starts on proposed increases to contributions proposed increases to contributions

13. Where we are: The Government announced in 2010’s Spending Review to produce £2.8bn savings per year by 2014/15 through increasing public service employee pension contributions

14. Proposed increases in contribution rates Full Time Equivalent Pensionable Pay Contribution rate (before tax relief) 2011/12 Contribution rate (before tax relief) 2012/13 Contribution rate increase in 2012 /13 Up to £15 0005.0% 0% £15001 - £211755.0%5.60%0.6% £21176 - £265576.5%7.14%0.6% £26558 - £489826.5%7.69%1.2% £48983 - £699316.5%8.48%2.0% £69932 - £1102737.5%9.85%2.3% Over £1102738.5%10.90%2.4%

15. Contribution rates Full time 2010/11 PayAdditional Cost (£ / month) £10 0000 £15 0000 £20 0008 £25 00010 £30 00025 £40 00033 £60 00060 £80 00093 £130 000152

16. Example 25 yr old F2 doctor in 2008 Pension scheme ‘typical’ career pathway with no breaks, retiring at 60: pays in £179 639 more to get a pension £26 089 less per year; retiring at 68: pays in £233 303 more to get a pension £34 491

17. Example 45 yr old consultant in 1995 Pension scheme ‘typical’ career pathway with no breaks, retiring at 65: pays in £118 197 more to get a pension £7432 less per year

18. Private pension? Instead of is unlikely to be as good as NHS pension even with the changes In addition to the NHS pension scheme: limited by new restrictions on annual and lifetime tax allowances on pension savings

19. Pensions: Negotiations? -Large increases in contributions for consultants (£6-7K / yr before tax) -Tax relief under threat -Taxation of pensions

20. Pay more in for longer to get less back

21. nhspensioncontributions@dh.gsi.gov.uk

22. Questions for you