from a bma perspective pay and pensions from a bma perspective dr cait searl consultant...
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![Page 1: From A BMA Perspective Pay and Pensions From A BMA Perspective Dr Cait Searl Consultant Cardiothoracic Anaesthetist / Intensivist Newcastle upon Tyne Hospitals](https://reader035.vdocuments.site/reader035/viewer/2022062516/56649dda5503460f94acfca9/html5/thumbnails/1.jpg)
Pay and Pensions
From A BMA Perspective From A BMA Perspective
Dr Cait SearlConsultant Cardiothoracic Anaesthetist / Intensivist
Newcastle upon Tyne Hospitals NHS Foundation Trust
![Page 2: From A BMA Perspective Pay and Pensions From A BMA Perspective Dr Cait Searl Consultant Cardiothoracic Anaesthetist / Intensivist Newcastle upon Tyne Hospitals](https://reader035.vdocuments.site/reader035/viewer/2022062516/56649dda5503460f94acfca9/html5/thumbnails/2.jpg)
RemitRemit
• Pay
• CEAs / distinction awards
• Pensions
• Questions for you
![Page 3: From A BMA Perspective Pay and Pensions From A BMA Perspective Dr Cait Searl Consultant Cardiothoracic Anaesthetist / Intensivist Newcastle upon Tyne Hospitals](https://reader035.vdocuments.site/reader035/viewer/2022062516/56649dda5503460f94acfca9/html5/thumbnails/3.jpg)
Pay freeze Pay freeze
![Page 4: From A BMA Perspective Pay and Pensions From A BMA Perspective Dr Cait Searl Consultant Cardiothoracic Anaesthetist / Intensivist Newcastle upon Tyne Hospitals](https://reader035.vdocuments.site/reader035/viewer/2022062516/56649dda5503460f94acfca9/html5/thumbnails/4.jpg)
PAY FREEZE PAY FREEZE
DDRB – current round of evidence in progress
-Relative position of doctors
-Morale / Motivation
![Page 5: From A BMA Perspective Pay and Pensions From A BMA Perspective Dr Cait Searl Consultant Cardiothoracic Anaesthetist / Intensivist Newcastle upon Tyne Hospitals](https://reader035.vdocuments.site/reader035/viewer/2022062516/56649dda5503460f94acfca9/html5/thumbnails/5.jpg)
PAYPAY
Foundation trusts & national T&Cs- incremental pay progression
- sickness entitlements
- extending working day
- study leave expenses / time
- SPAs ………
![Page 6: From A BMA Perspective Pay and Pensions From A BMA Perspective Dr Cait Searl Consultant Cardiothoracic Anaesthetist / Intensivist Newcastle upon Tyne Hospitals](https://reader035.vdocuments.site/reader035/viewer/2022062516/56649dda5503460f94acfca9/html5/thumbnails/6.jpg)
PAYPAY
Pay freeze
Foundation trusts & national T&Cs- incremental pay progression
- sickness entitlements
- extending working day
- study leave expenses
- SPAs
Scotland
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CEAs / Distinction / Discretionary points
Merit Awards reviewMerit Awards review
? ? ?? ? ?
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Pensions
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Pension time line
1948 NHS Pension scheme starts
1991 Scheme opened to part time staff
1995 Early retirement changes
2008 New Scheme Implemented
March 2010March 2010 Hutton ReviewHutton Review
- Increase normal retirement age
- Move from final salary to CARE (career average revalued earnings)
![Page 11: From A BMA Perspective Pay and Pensions From A BMA Perspective Dr Cait Searl Consultant Cardiothoracic Anaesthetist / Intensivist Newcastle upon Tyne Hospitals](https://reader035.vdocuments.site/reader035/viewer/2022062516/56649dda5503460f94acfca9/html5/thumbnails/11.jpg)
Pension time line
1948 NHS Pension scheme starts
1991 Scheme opened to part time staff
1995 Early retirement changes
2008 New Scheme Implemented
March 2010March 2010 Hutton ReviewHutton Review
April 2011April 2011 Switch from RPI to CPISwitch from RPI to CPI
![Page 12: From A BMA Perspective Pay and Pensions From A BMA Perspective Dr Cait Searl Consultant Cardiothoracic Anaesthetist / Intensivist Newcastle upon Tyne Hospitals](https://reader035.vdocuments.site/reader035/viewer/2022062516/56649dda5503460f94acfca9/html5/thumbnails/12.jpg)
Pension time line1948 NHS Pension scheme starts
1991 Scheme opened to part time staff
1995 Early retirement changes
2008 New Scheme Implementedted
March 2010March 2010 Hutton ReviewHutton Review
April 2011April 2011 Switch from RPI to CPISwitch from RPI to CPI
July2011July2011 ‘Consultation’ starts on‘Consultation’ starts on
proposed increases to contributionsproposed increases to contributions
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Where we are: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
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Proposed increases in Proposed increases in contribution ratescontribution 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 £15 000 5.0% 5.0% 0%
£15001 - £21175 5.0% 5.60% 0.6%
£21176 - £26557 6.5% 7.14% 0.6%
£26558 - £48982 6.5% 7.69% 1.2%
£48983 - £69931 6.5% 8.48% 2.0%
£69932 - £110273 7.5% 9.85% 2.3%
Over £110273 8.5% 10.90% 2.4%
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Contribution rates
Full time 2010/11 Pay Additional Cost (£ / month)
£10 000 0
£15 000 0
£20 000 8
£25 000 10
£30 000 25
£40 000 33
£60 000 60
£80 000 93
£130 000 152
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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
![Page 17: From A BMA Perspective Pay and Pensions From A BMA Perspective Dr Cait Searl Consultant Cardiothoracic Anaesthetist / Intensivist Newcastle upon Tyne Hospitals](https://reader035.vdocuments.site/reader035/viewer/2022062516/56649dda5503460f94acfca9/html5/thumbnails/17.jpg)
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
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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
![Page 19: From A BMA Perspective Pay and Pensions From A BMA Perspective Dr Cait Searl Consultant Cardiothoracic Anaesthetist / Intensivist Newcastle upon Tyne Hospitals](https://reader035.vdocuments.site/reader035/viewer/2022062516/56649dda5503460f94acfca9/html5/thumbnails/19.jpg)
Pensions: Negotiations?Pensions: Negotiations?
- Large increases in contributions for consultants (£6-7K / yr before tax)
- Tax relief under threat
- Taxation of pensions
![Page 20: From A BMA Perspective Pay and Pensions From A BMA Perspective Dr Cait Searl Consultant Cardiothoracic Anaesthetist / Intensivist Newcastle upon Tyne Hospitals](https://reader035.vdocuments.site/reader035/viewer/2022062516/56649dda5503460f94acfca9/html5/thumbnails/20.jpg)
Pay more in for longer Pay more in for longer
to get less backto get less back
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[email protected]@dh.gsi.gov.uk
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Questions for you