BMA warns GPs face losing £120,000 in pension changes

GPs could be over £120,000 worse off over their lifetime now that NHS pensions follow the consumer prices index (CPI), the BMA has warned.

Although the government is yet to announce its response to the Hutton Report on public sector pensions, it has already taken action and changed the way that the NHS pension scheme tracks inflation.  

The scheme now follows the Consumer Prices Index (CPI) instead of the Retail Prices Index (RPI).

NHS pensions will increase by less per year because the CPI is comparatively lower than the RPI and does not include items such as council tax and mortgage payments.

New BMA figures show that the change to CPI could have a dramatic effect on doctors' pensions.

A newly retired doctor, retiring at the age of 65 with an initial pension of £35,000, would be worse off under CPI uprating by a total of £2,000 by the age of 70, the BMA said.

By the age of 85 the doctor would be £124,500 worse off.

The BMA is urging GPs to express their views and contribute to the DoH consultation currently being held on changes to the NHS pension scheme.  

Although the change to CPI has already happened and is therefore not part of the consultation, it is ‘just one of the various factors that has eroded doctor’s pensions', the BMA said.

Submit your views to the consultation.

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