Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what assessment his Department has made of the implications on workforce of the expiration of the temporary covid-19 measures allowing retired NHS staff to return to work without pension penalties.

The pension measures in Section 45 of the Coronavirus Act 2020 allow retired and partially retired staff to return to work or increase their working commitments without the risk of having their pension benefits suspended.

Since March 2020, the 16 hour rule, abatement of ‘Special Class’ members of the 1995 Section (staff with the reserved right to retire at 55 years old without an actuarial reduction) and abatement of draw down members in the 2008 Section and 2015 Scheme have been suspended. Abatement does not apply generally in the scheme, but it does apply to ‘Special Class’ staff who return to work between the ages 55 to 60 years old. Abatement recognises that ‘Special Class’ members have a significant benefit not available to other staff in the National Health Service. Once abatement is resumed, this closed cohort will still be able to continue working for the NHS, typically at least half time. The vast majority of staff are not subject to abatement after taking their pension.

These measures are due to expire on 24 March 2022, with the NHS Pension Scheme rules returning to business as usual arrangements. The Department is keeping this under review.