Doctors: Pensions

(asked on 1st February 2022) - View Source

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, whether he has made an assessment of the impact of the end of the temporary suspension in March 2022 of pension penalty protections introduced in respect of the NHS pension scheme during the covid-19 outbreak on senior doctors’ decisions on (a) early retirement and (b) reductions in their working hours.


Answered by
Edward Argar Portrait
Edward Argar
Minister of State (Ministry of Justice)
This question was answered on 4th February 2022

Three rules were suspended by Section 45 of the Coronavirus Act 2020. Staff in the 1995 section no longer had to restrict hours worked to no more than 16 hours a week for four weeks after taking their pension. ‘Special Class’ members and Mental Health Officer (MHOs) of the 1995 Section (staff with the reserved right to retire at 55 years old without an actuarial reduction) no longer would have their pension abated so that pension plus current earnings could not exceed earnings before retirement. Staff in the 2008 and 2015 schemes no longer had to reduce their pensionable earnings by 10% on drawing down some of their pension.

These rule changes affected only retired staff and therefore did not impact the early retirement of doctors. The vast majority of doctors, other than a small number of MHOs in post before 6 March 1995, are not ‘Special Class’ members and are not benefiting from Section 45 and will be unaffected when it is withdrawn. Doctors who have retired and returned to the National Health Service have benefited from the suspension of the 16 hour rule since March 2020 and have been able to immediately return to full-time work.

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