The offer announced by chief secretary to the Treasury Danny Alexander on 2 November included a better accrual rate– the rate at which annual benefits are earned – than the one originally proposed (1/60 rather than 1/65).
In addition, a transitional protection was offered to staff within 10 years of retirement, allowing them to maintain the retirement age applicable in their existing arrangement, and also to protect their current method of accrual (for example retain a final salary pension and GP equivalent).
However, despite the new offer the BMA has calculated that a GP aged 55, although partly protected by the transitional arrangements, would have to pay £67,000 more in contributions over the remainder of their working life.
Over 20 years of retirement, they would also be worse off by around £292,000 as a result of pensions payments being uprated in line with the Consumer Price Index rather than the Retail Price Index, the BMA said.
The BMA recently announced that it will ask members to vote on the government’s final offer for the NHS pension scheme.
The union has decided to ‘step up’ preparations for a possible ballot on industrial action, which would follow the vote in the event of a rejection of the proposals.