BMA calls for 'top three tier' contributions cap

The British Medical Association (BMA) has called on the government to reduce the “disproportionate impact” of pension contribution increases on NHS pensions staff, by introducing a “top three tier” cap.

NHS pension scheme reforms mean that doctors earning more than £48,983 face an increase in pension contributions of 2.4 per cent from this April. Those earning £26,558 to £48,982 would see a one per cent increase, while those earning between £21,176 and £26,557 would have to contribute 0.3 per cent more.

Further, the combined effect of the reforms will see contribution rates between 2007/8 and 2014/15 rise by 108 per cent for those earning around £49,000, 125 per cent for those earning around £70,000 and 142 per cent for those earning above £110,000. As a result of this, the BMA argued that these three tiers of earnings should be capped at April 2012 rates. The highest paid doctors would then still contribute 10.9 per cent of their salaries.

In a statement on its website, the BMA stated: “Although this would mean the NHS pension scheme would not achieve the government’s blanket target of an average increase of 3.2 per cent in staff contributions across all public sector schemes, the government has already made significant savings by switching pension indexation from the retail price index to the consumer price index.”

It added that “it is important for the future sustainability of public sector schemes, that they remain sufficiently attractive to both lower earners and higher earners”.

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