For the first time in 40 years, doctors are taking limited action, whilst ensuring patient safety, nurse are likely to take similar action. This alone speaks volumes for the incompetence of the Government in this matter, bulldozing through changes without adequate and fair consultation.
What sane business would demoralise its workforce so much, when it is trying to make major changes to working practises? To make matters worse it is trying to obtain popularity by creating envy with untrue “never had it so good” claims on their pension provision.
In fact the opposite is true, the present NHS Pension scheme gives poor value for the contributions paid, almost half of what should be possible and is badly, almost incompetently managed. It has a large State liability, without the Funds or money to back it up, only future promises which are constantly being changed and reduced.
In 2008, major changes were agreed and implemented; some three years later they are being changed just as drastically with increased contributions, reduced benefits and delayed retirement. There is no sense in the proposals or long term solution, they are only temporary panic measures.
The State pension ship is doomed unless it is navigated into calmer waters for a major refit or scrapped and replaced with a modern model, unfortunately like the Titanic it is being driven forward into the iceberg of increased over 65 longevity without anyone competent at the wheel.
There is panic over increased life expectancy in the retired and yet even the basic study is not being done, The population head count carried out fourteen months ago in the 2011 Census is still not available, yet it would give important information on the actual over 65 increases since the last count in 2001. No reasonable explanation has been given for the large projected increases.
Meanwhile member’s contribution savings are not put aside for their benefit but being spent illegally; in the NHS, the last OBR report showed contributions exceeding payments by £2bn with the Government pocketing the difference. Yet it could be readily changed to a more stable and sustainable fully Funded scheme to give stability and more rewarding sytsem .
The Health Minister quotes the highest paid doctors earning £148,000 and receiving £68,000 pension but they are paying large pension and NI contributions and getting less than a 50% of wage return. Average NHS pensions on the last government figures available showed a 25% return, much less than they would get in a good private scheme and also being told to work to age 68.
Teachers, Police and Fire are in a similar position and also dissatisfied, yet the rest of the Public Sector are subsidised, paying little contributions for similar benefits.
Logical thought, careful and considerate planning and an attitude change are needed to establish a fair and long term system; contributions and NI should be treated as personal savings not an Exchequer tax income, the money should be put aside and invested and managed wisely to give maximum benefits.
The problems of increased longevity in the elderly can be managed without panic or increases in contributions or taxation but the existing money needs to work and grow, not spent at source. It does not have to be lost to the system, just used differently and invested in the UK.
Pensions need to get back to basics and serve the purpose for which they were intended of long term savings giving a steady return through work and retirement, there is more than enough money in the system to meet all elderly needs and give freedom of choice on retirement, it just needs the will and determination to make it work
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