Bedbugs and consultants are bleeding us dry
'Unsustainable' nurse pensions attacked by business leaders
Business leaders have renewed their demand for a review of nurses’ and other public sector pensions, calling for a shift from “unsustainable” final salary schemes.
A report by the CBI says a more affordable system is needed if the “trillion pound burden” on the taxpayer is to be contained.
It claims there is an annual unfunded public sector black hole of £10bn, partly because staff contributions are “out of kilter” with payout levels.
The business group’s report adds that the picture is complicated because public sector pensions vary greatly in size and structure depending on the employer.
It says some, such as the local government scheme, have more transparent arrangements and are funded, unlike the civil service scheme, which is unfunded.
Public sector pension benefits are on average worth 26 per cent of salary every year, far higher than private sector norms, and the total cost will increase as people live longer, it claims.
The CBI report, Getting a Grip: the route to reform of public sector pensions, urges the next government to set up an independent commission within weeks of taking office to investigate pension costs.
It says the public sector needs to “pay its way” for pensions.
All public sector staff should be moved off guaranteed defined benefit schemes, which include final salary and career average pensions, says the report.
CBI deputy director-general John Cridland said: “Public sector workers cannot lose the pensions pot they have accrued so far, but they will have to adapt in the future. We think that, for many public sector employers, shifting to a notional defined contribution pension could be the best way forward. It would ease the burden on taxpayers and offer public sector workers a secure and sustainable pension.”
A Treasury spokesman said: “The most important measure of public sector pension affordability is the government’s ability to pay pensions as they fall due - the cost of pensions is projected to remain at under 2 per cent of GDP for the foreseeable future.”
Shadow chief secretary to the Treasury Philip Hammond said: “It is already widely accepted that reform is needed and we will work to achieve consensus to move forward.”
View results 10 per page | 20 per page | 50 per page
Have your say
You must sign in to make a comment.
Online training units, written and reviewed by experts. Earn two hours' CPD and a personalised certificate for your portfolio.
Subscribers get five FREE learning units and non-subscribers can access each learning unit for £10 + VAT.
Share
Readers' comments (32)
Anonymous | 6-Apr-2010 12:08 pm
The banks have caused near ecomonic ruin and its now the fault of the public sector, but lets take advice from the CBI and its associated directors and leaders in business, who have over the years ensured their own protection of salaries and bonuses at the expense their employees
Unsuitable or offensive?
Anonymous | 6-Apr-2010 1:34 pm
I trust that if we are to lose our pension rights then the same axe will be taken to MP's benefits.
And for the CBI to be commenting means its members have lifted their snouts from the trough just long enough to be jealous....
Unsuitable or offensive?
Anonymous | 6-Apr-2010 1:53 pm
Why are business fat cats looking at our pensions!! What right do they have, do they know the sacrifices people make to be a nurse. Not seeing your childeren every christmas, working bank/public holidays, missing family events because the ward can not give you time of due to pressure on the ward!!! We deserve a decent pension!!!
Unsuitable or offensive?
Tracie Simpson | 6-Apr-2010 4:19 pm
WHAT CAN I SAY. SPEECHLESS.
Well aware that the financial state this country in is most DEFINETLY NOT Caused by us public sector workers, YET AS USUAL ITS THE GRAFTERS AND JO PUBLIC THAT WILL ULTIMATELY PAY THE PRICE WELL THE FAT CATS SIP CHAMPERS!!!!
Unsuitable or offensive?
Kirsty Armstrong | 6-Apr-2010 5:18 pm
Incredible -I agree-happy to give up mine if you give up yours-suspect I will find it easier to manage having done so on very little for very many years. Kirsty qualified 1981
Unsuitable or offensive?
Anonymous | 6-Apr-2010 5:46 pm
This is outrageous! I would definatly give up my pension if the CBI gave up their pension! They wouldn't work for nothing so why do they expect us to work for nothing? I have worked very hard to get to where i am today and its far from an easy job! They want to come and work along side us, and see exactly what we do do.
Unsuitable or offensive?
Anonymous | 6-Apr-2010 6:01 pm
The pension is the only 'perk' of the job, we dont get the big pay rises, christmas and other bonuses, severance pay and other perks that the private sector get. The maximum pesion on the NHS final salary scheme is a lump sum plus 1/2 your final years salary, provided that you have worked full-time for 40 years. Your final years salary may not be much if you're still a staff nurse when you retire, as Band 6 jobs are being cut in the current econic climate caused by these bankers!
Unsuitable or offensive?
Anonymous | 6-Apr-2010 6:06 pm
sorry for the typos in the last comment, I did spell bankers correctly though didn't i?
Unsuitable or offensive?
Anonymous | 6-Apr-2010 6:21 pm
im "only"a band six nurse,but sometimes im responsible for the well being of six surgical wards,if it's my turn to take the bleep.this means i may have up to 50 more junior staff to support and keeping tabs on up to 160 patients,some of whom are acutely unwell. thats over 200 people. now if i was in the private sector i would be making hundreds of thousands,instead of my barely adequate salary. how much do we deserve our pensions? every blinking penny we deserve!!
Unsuitable or offensive?
Anonymous | 6-Apr-2010 7:50 pm
why are we putting up with it and going along with it all????...iam a band 5 can only get a band 6 by taking a £500 paycut!!! been qualified 18yrs now and can not do it as iam the main earner .....and now this???....i think its time we did something and stand up for ourselves ...i strongly feel the old fashioned view that we shouldnt stike is so out dated and feel a strike is needed to show we can not be pushed around anymore....i have friends in other public service who get so much more its not fair anymore and the government think we will just take it???..why.....we should really think about striking.....the nhs is a joke now
Unsuitable or offensive?
Steve Williams | 6-Apr-2010 8:57 pm
Hohohoho... now this definitely an ironic NT April Fools joke that's gone wrong eh?
Cummon NT chaps and chappesses it's five days past its sell-by date.
Whaddya mean? It's serious?
Merchant wankers (sorry - I meant to say 'bankers' not 'wankers' - oh alright I admit... I meant to say wankers in the first place) are going to offer advice on the economy now?
Dohhhhhhhh!!!! Like Homer said "Shake it more than twice and it's called playing with yourself!"
CBI? A semi-exclusive circle-jerk of sad old fappers who couldn't manage a global recession - let alone a National Health System that's survived for more than 60 years and is the envy of the world.
Me being sardonic again? Urine-off!
Unsuitable or offensive?
Anonymous | 6-Apr-2010 9:51 pm
Is this the Governments way of clawing back money paid to us for calling us a profession as opposed to a vocation? Either way, we receive little enough as it is in the way of remuneration. The CBI should be looking at those " Hero's " such as sports men & women ( mainly men, who can juggle and kick balls, no pun intended ) and their remuneration packages, before they DARE to start on us. People love to be entertained, but you have to be alive to enjoy what you want and not what you need. Prioritisation is totally awol here methinks!
Disillusioned & disgusted Nurse.
Unsuitable or offensive?
Anonymous | 6-Apr-2010 10:41 pm
Steve,d'yo think you're clever 'cos you swear? 'cos you think your more intelligent than the rest of us poor little uneducated lot? your a sad little soul. no really you are.
Unsuitable or offensive?
mike | 7-Apr-2010 8:07 am
Anonymous | 6-Apr-2010 7:50 pm, I totally agree.
We already get a ridiculously low wage considering the level of skill, responsibility and accountability we have, and now they want to take our (not exactly great) pensions? What a joke!
It really is time that we got together as a profession and went on strike. It works for everyone else! The difference between us and BA or the railway workers however is that Nurses are absolutely essential! If we went on strike the country would be well in the proverbial! It would force the government and idiots like these 'buisness' leaders that we earn every penny we have and deserve much, much more! Not only that it would allow us to DEMAND better and protected pay, it would allow us to DEMAND better working conditions and protected Nurse/patient ratios which would ultimately benefit patients.
Where are our pathetic 'unions' on this? Maybe we should scrap the NMC and RCN and call unite in?
Unsuitable or offensive?
Anonymous | 7-Apr-2010 3:38 pm
If you vote for the tories you will be upholding anything the CBI want to do. Those thatcher days weren't so long ago, just remember what it was like then - or ask someone who does. I'm not a member of any political party, but have been around a few years now and long enough to know who is 'urinating down your back, but telling you it's raining'
Unsuitable or offensive?
Anonymous | 7-Apr-2010 3:52 pm
As detailed previously agree its time we took a stand. People pray on our "angels" and perceived meek manner. We also get scapegoated for dirty wards, poor care and poor attitudes!!!!.
Unsuitable or offensive?
mike | 7-Apr-2010 5:09 pm
Anonymous | 7-Apr-2010 3:38 pm, I am sick and tired of everyone blaming Thatcher for everything, that was a generation ago! Get over it! Labour have done just as much damge IF NOT MORE!!!!
And Anonymous | 7-Apr-2010 3:52 pm, I totally agree, but only a mass walk out and strike would stop that happening. We need to stop letting those in charge get away with emotional blackmail!
Unsuitable or offensive?
Anonymous | 7-Apr-2010 9:28 pm
they can have my pension because I have only done 17 years and when I retire I will have done 24 years my forecast pension will be -----wait for it-------- £1400 PER ANNUM so they can have it for all its worth because by the time I pay tax and national insurance it will be worth diddly squat-but just enough to push me over any benefits I might have been entitled to -having done my back in so I cant walk properly- lost my family because I never attend Christmas or family gatherings- so If that's a far too rich pension for the CBI then as they must be poorer than me they can have it!!!
Unsuitable or offensive?
Anonymous | 7-Apr-2010 9:51 pm
BRILLIANT!!!!!! AN EXCUSE TO LEAVE THE
BUL&*%!T BEHIND, TAKE MY EXPERIENCE AND THE TRANSFERABLE SKILLS THAT MANY MANY NURSES POSSESS AND REAP THE REWARDS OF WORKING FOR A PRIVATE COMPANY
Unsuitable or offensive?
mike | 8-Apr-2010 2:20 am
Can these idiots in the CBI and the moronic government and NHS 'managers' who listen to them not see that constant streams of things such as this are just going to cause them to lose all their best and most talented Nurses? Just look at the comments on here as a small example! Retention is difficult enough in this hard and thankless career, and if you don't look after your staff, you WILL lose them!
Unsuitable or offensive?