My Partner is a
Doctor. One of the things she is
currently v. unhappy about (ignoring the general state of the NHS) is her
pension.
She belongs to the
old scheme (N/80ths NRA 60) and quite soon she will be moved across into the
new scheme. The BMA gave her some
details on the proposals last week.
I did warn her at
the time that they fluffed the review on '08 and that the arrangement is just
not sustainable, but stopped myself short of the 'I told you so' moment, the
reason being that having read the details, I cannot be sure that she is worse
off.
Before :
N/80ths pension +
3N/80ths cash, NRA 60
After :
N/54ths, NRA 67.
The early
retirement factor is due to be about 5% (not confirmed).
So this becomes 54
* 1.05^7 = 80ths
So, on the face of
it, the you get about 25% less pension (the cash) and pay 3% more for the
privilege.
Hold on though, the
salary used to calculate the benefit is not Final Salary anymore, it is the
salary in year, revalued by CPI + 1.5%.
If (for the sake of
argument), there are 15 years between retirement and age 60
So, if the govt keeps NHS pay-rises below CPI+1.5% - just 0.5% per annum, the difference is slowly eroded.
Indeed CPI+1% would be a better pay rise that she has had for the last 3 years.
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