PENSIONS

Old Age or Bust

Tony Chatfield

1946 National Insurance Act• Introduced a Welfare State

• Pension System

• Where for Every 5 people paying in, 1 took out

• People paid approximately 5% of their wage

• Led to the NHS Act (led by Nye Bevan)

• Started the NHS on 5th July 1948

• Resigned in 1951, due to the introduction of Charges to the NHS

I Have a Dream of Retirement

• With good health

• Money providing a quality of life

• Spare capacity for luxuries

With experience the reality has become a Potential

NIGHTMARE

Pensions• People Think of Old Age &

Retirement

• Nest Egg for a Rainy day

• Dreams of a Holiday Home

• New Car

• New Hobbies

That’s just a Dream

Time we woke up

Instability in Private pensions

Where Pensions & Endowments have failed

The answer has been to sell a top up, to meet the failure of the plan/policy

Question?

If the first plan or policy is failing, What’s the point of buying an additional one?

What about us?

• NHS Staff in General, and specifically Ambulance Staff.

• Does the NHS Pension Scheme offer Protection?

• Is it Safe?

The NHS Pension Scheme• Probably one of the Most secure in the UK• Is Index Linked• Is a Final Salary Scheme (Best 365 days of the last 3 years)

• Is a DB (Defined Benefit) Scheme (based on your length of service & salary)

• Works on a contributory basis (where both employer & employee pay into the scheme)

• Can be added to, with AVC’s• Includes the Injury Benefit Scheme, Often called

‘The best kept secret’

The History so Far• 1973 - Unions present evidence to Government requesting Ambulance

staff retire at a similar age (55 yrs)to Fire Service Staff. Government agree to principle & start a working Party

• 1975 - DHSS agree to consider Ambulance Staff for earlier retirement• 1981 - Issue raised again by Unions, Secretary of State agrees, working

Party re-convened, Meets in 1983• 1991 - Ministers finally accept Working party report, options to be

discussed for changes to retirement/superannuation scheme. A group to meet to arrange this. (? Never Happened)

• 1996 - ASA re-arranges the establishment of a working group. Reports issued in 1997 & 1998.

Yet Still no Facility for Staff to Retire at 55 with NO Loss of Benefits

The ASA...• ‘…favoured options and means for both a reduction in the retirement

age and an improvement in the pension arrangements for this staff group.’

Highlighted Factors…

• ‘Wear & Tear’ effects of many years of lifting and Handling

• Ambulance staff spend more time driving on 999 calls than other Emergency Services (Increased mental stress)

• Greater susceptibility to work place accidents (due to uncontrolled environments)

• Disturbed sleeping & eating patterns from shift-work/Busy Shifts

• Added Psychological effects of responsibility of Paramedic Status, including increased public expectation.

• Increased ‘On the road’ time due to geographical deployment

The Realism!• Only 1:100 Ambulance Staff reach 65 *1

• Average Length of EMS Service is around 23 yrs• The Average Retirement age is 54 yrs*2

• Nearly ALL Staff Retire on Ill Health• Every year we bury colleagues,with figures

showing around 2% of staff die whilst in service. (Ambulance Staff are twice as likely to die compared to Nursing/Midwifery staff) *3

• A Large number of staff die within 5-8 yrs of actual retirement.*4

*1 ‘Cast Aside’ article by Patrick Butler 2000

*2 ASA Report of the Pensions retirement Age Working Group 1997/1998

*3.*4 The 1983 Report form the working party on the problems of long serving Ambulance staff

FactIn the NHS, 3.85 people per 1000 staff retire per Annum on Ill Health Grounds

In the Ambulance Service up to 17+ staff per 1000 per Annum. *1

Up to 4+ times the average of the NHS*1 Paul Robinson NHSPA DWP Pension Review 7/5/03

Realism

With the Average retirement age of 54. Even if we lower

the retirement age to 55, some staff still won’t reach

this target!

Where Does This Leave Us?

A Review of the NHS Pension Scheme

On Behalf of • Employers• The NHS Pension

Agency• WAG

This is led by The NHS Confederation

The Review

Coincides with the introduction of A4C

Question?

Is this not as important as Agenda for Change?

First Real Opportunity for 30 Years?

This may be our only opportunity to improve

the working lives of Ambulance Staff!

An Acceptance for staff to Retire at 55?

• This will cost more, as staff may cover the cost of being able to finish earlier

• May not be affordable for other lower paid jobs other than EMS/Management

• May Not be Acceptable Due to the Governments Proposal to stop Age Discrimination, and Extend the Retirement Age

What Next?• Copy ‘Best Practice’ from across the UK• Learn from others to ‘IWL’• A review to allow alternate career pathways,

rather that Ill-Health retirements on Capability• Transitional roles through the KSF• An increase in the Step-down & Return of older

staff• Push for NO increase in retirement age to 65,

remain with an option to retire at 60 with NO loss of benefits

Review Recommendations so far• Phased Starts similar to Mortgage providers• The possibility of Critical Illness cover• Increased Death Benefits• Changes to DB1 Benefactors for multiples.

• The possibility of a 60ths Scheme

• A Multi -Tier scheme so people can pay for what they can afford

• Add/Bolt on improved benefits (E.g. Health Cover)

ALL OF OUR EGGS ARE IN ONE BASKET, WE’D BETTER NOT DROP IT!

UNISON Branches of the Welsh Ambulance Service

We are the ONLY Branch to be actively involved in both the DWP Green Paper

consultation Process, and the NHS Confederation led review of the NHS

Pension Scheme.

Full Consultation will commence in the Autumn, Use YOUR Opportunity to ensure

Ambulance Staff get ‘Fair Retirement’

Join our Campaign ‘A Drive for 55…’

Fair retirement for Ambulance StaffVisit

www.unison-welsh-ambulance.co.uk