My honourable friend the Parliamentary Under-Secretary of State, Department of Health (Ann Keen) has made the following Written Ministerial Statement.
The report by the Government Actuary of the valuation of the NHS pension scheme at 2004 is published today. I am placing a copy of this report in the Library.
The principal purposes of the valuation are to assess the level of liability in respect of the benefits due under the NHSPS regulations, taking into account the demographic experience of the scheme since the previous valuation, and to recommend the contribution rate to be paid by the employers who participate in the scheme. This will be implemented from 1 April 2008.
The report shows that as a result of the changes to the NHS pension scheme being implemented from 1 April 2008, the recommended employer contribution rate has reduced from 15.3 per cent of pensionable pay (as would have been required) to 14 per cent of pensionable pay (the current contribution rate). This represents a saving of around £430 million in contributions.