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NHS: Pensions

Volume 461: debated on Thursday 21 June 2007

To ask the Secretary of State for Health what the employee contribution rate is to the NHS pension scheme; what plans there are to change this rate; what the revenue yield would be from varying the rate by 1 per cent; and if she will make a statement. (144264)

The contribution rate for scheme members is 6 per cent. of pensionable pay, however members classed as manual workers pay 5 per cent. NHS employers and the national health service trade unions have proposed a new tiered contribution structure with the rate of employee contributions tiered by pensionable pay.

The NHS pension scheme pensionable payroll as at 31 March 2006, taken from the resource accounts, was approximately £31 billion. Increasing the member contribution rate across the board by 1 per cent. of pensionable pay would yield just over £0.3 billion a year.