Although it’s a dull story, it is an important ethical issue in the medical world on the basis of whether doctors should ever strike or withdraw their services.
So, what actually is the bare outline of the new pension scheme?
The people in the health service who will be spared from the pension reform are, the "530,000 NHS staff earning between £15,000 and £26,557" and "those less than 10 years away from retirement" (http://www.bbc.co.uk/news/business-16259238).
But those who earn more than £26,557 will be expected to pay more towards their pension; as reported on the BMA website, "currently doctors pay 6.5%, 7.5% or 8.5% depending on what they earn" but "by April 2014 individuals who are currently paying 8.5% will have to pay 14.5%" (http://tinyurl.com/6umt56a). On top of the increase in rates that doctors will have to pay towards their pension, they will also have to "work to the age of 68 to be able to draw a full pension" (http://tinyurl.com/6umt56a), up from 60 on the 'old' pension scheme.
Some surveys were carried out by the BMA which showed that "8 out of 10 association members thought the NHS pension scheme proposals were unacceptable" (http://tinyurl.com/78rsmqm). The new scheme has lead to doctors "saying for the first time in a generation, they would be prepared to take industrial action" (http://tinyurl.com/78rsmqm).
In this story there are a number of talking points;
Firstly, the fact that the amount that a doctor will have to pay towards his pension will rise, as illustrated in the statistics above, which means that they are therefore not getting paid as much from the government at the end of their careers by the government, but are funding a lot more of their pensions themselves.
Secondly, raising the age of retirement means that the average doctor will spend around 44 years in the medical service (assuming they graduated at 24 years of age and then started their foundation years immediately after graduation). That is a staggering length of time to sustain the high demands of time, learning and commitment that is necessary for a doctor.
Thirdly, the ethical issues of strike action by doctors. This is surely the most important talking point that has resulted from the governments new plans on pension reform. Doctors have said that they would be willing to take industrial action against the new reforms. But what could that mean for the patients, and is a dispute over pensions a justifiable reason to withdraw their services from the public domain. This argument was summed upon the BMA website; "the BMA will now draw up detailed plans on taking industrial action, with all attempts being made to minimise any risk of harm to patients" (http://tinyurl.com/78rsmqm). So it shows that they are being cautious in the matter...
The people in the health service who will be spared from the pension reform are, the "530,000 NHS staff earning between £15,000 and £26,557" and "those less than 10 years away from retirement" (http://www.bbc.co.uk/news/business-16259238).
But those who earn more than £26,557 will be expected to pay more towards their pension; as reported on the BMA website, "currently doctors pay 6.5%, 7.5% or 8.5% depending on what they earn" but "by April 2014 individuals who are currently paying 8.5% will have to pay 14.5%" (http://tinyurl.com/6umt56a). On top of the increase in rates that doctors will have to pay towards their pension, they will also have to "work to the age of 68 to be able to draw a full pension" (http://tinyurl.com/6umt56a), up from 60 on the 'old' pension scheme.
Some surveys were carried out by the BMA which showed that "8 out of 10 association members thought the NHS pension scheme proposals were unacceptable" (http://tinyurl.com/78rsmqm). The new scheme has lead to doctors "saying for the first time in a generation, they would be prepared to take industrial action" (http://tinyurl.com/78rsmqm).
In this story there are a number of talking points;
Firstly, the fact that the amount that a doctor will have to pay towards his pension will rise, as illustrated in the statistics above, which means that they are therefore not getting paid as much from the government at the end of their careers by the government, but are funding a lot more of their pensions themselves.
Secondly, raising the age of retirement means that the average doctor will spend around 44 years in the medical service (assuming they graduated at 24 years of age and then started their foundation years immediately after graduation). That is a staggering length of time to sustain the high demands of time, learning and commitment that is necessary for a doctor.
Thirdly, the ethical issues of strike action by doctors. This is surely the most important talking point that has resulted from the governments new plans on pension reform. Doctors have said that they would be willing to take industrial action against the new reforms. But what could that mean for the patients, and is a dispute over pensions a justifiable reason to withdraw their services from the public domain. This argument was summed upon the BMA website; "the BMA will now draw up detailed plans on taking industrial action, with all attempts being made to minimise any risk of harm to patients" (http://tinyurl.com/78rsmqm). So it shows that they are being cautious in the matter...
It would be great to hear your points of view on this matter by posting a comment underneath or even sparking a good discussion based on what you think should happen or what is best for the community.
Very good points. It should be pointed out that the government wants to move consultants from a final salary pension scheme to one of average earnings. Consultants historically spend a long time as junior doctors (Earning relatively little) while training. The Govt proposals mean that a new doctor, who becomes a consultant, will have to pay more and work 8 years longer to earn considerably less than their predecessors on retirement. Much of this action is to protect young and new doctors coming into the profession. The opinions of medical students (Future doctors) are being canvassed since they will be most affected. Incidentally, if you take the pension scheme for doctors out of the NHS scheme it is very profitable (More money is paid in than will ever be drawn out). There is a feeling of growing resentment that the govt is trying to profit from doctor's pensions. Should doctor's strike? Should it be illegal like the police? Ishigawa
ReplyDeletePlease note: The current retirement age is 60 for most doctors. Medical pensions were reformed only 5 years ago (After protracted negotiations) when a stand alone scheme was brought into the overall NHS pension scheme.
ReplyDeleteIt seems to be a shame that the government are trying to make money out of the doctors, it would be interesting to see how much they are making from doctors pensions at the moment and how this will rise in light of the new scheme.
ReplyDeleteAnd thank you (Anonymous Jan 31st 10.29PM) for pointing out that the retirement age is 60 and not 65, much appreciated.
Benjamin.
Such a great post. Reading it was comforting and enlightening! Loved reading this post
ReplyDelete