Government 'clawback' on pensions

GP pensions will not be uprated to take account of increases in average incomes between 2006 and 2008, the BMA has revealed.

In April the High Court ruled that health secretary Patricia Hewitt acted unlawfully in 2006 when she retrospectively capped the ‘dynamising factor’, used to calculate inflationary increases in pensions, for the period 2003/06. It ordered the government to remove the cap, increasing the pensions of GPs who retired during these years.

The ruling does not apply to the dynamising factor for 2006/8, however.

Now the government looks set to clawback some of the increased dynamisation it has been forced to pay in earlier years.

In last week’s letter to the profession, GPC chairman Dr Laurence Buckman wrote that the health secretary plans set dynamisation at 1 for those years.

This replaces earlier calculations of a 14 per cent increase over the two-year period. As a result, the compound dynamisation for the years 2003/6 will be the same as that for 2003/8.

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