GPs to win back £35,000 in missed pension payouts

Retired GPs to receive pension top-ups by early 2009.

Retired GPs could receive payouts of more than £35,000, to make up for the money snatched from them when the DoH capped their pensions, the GPC has revealed.

Updated dynamisation factors for 2003/4 to 2005/6 mean that GPs who retired up to 2006 will receive a 20 per cent increase in their pensions, as well as a cash payout to make up for money they missed out on over the past two years.

The figures will also mean a 4 per cent increase in the pension entitlements of younger GPs.

Under the original GMS deal, pensions dynamisation was worth around 52 per cent over the first three years of the contract, from 2003/4 to 2005/6.

But the DoH sought to impose a deal that would spread 48 per cent dynamisation over five years, from 2003/4 to 2007/8.

This meant that GPs who retired after the third year of the GMS contract stood to have pensions uprated by just 29.5 per cent, instead of the full 52 per cent they were due.

The government was forced to reinstate the full dynamisation after the High Court ruled it had no power to retrospectively impose the cap.

Andy Blake, head of the BMA's pensions department, said that the greatest beneficiaries of the ruling will be those that retired up to March 2006 in the expectation that dynamisation would be higher.

As well as a 20 per cent increase in their annual pension, they can expect a one-off payment of around 110 per cent of their annual pension plus interest. This is to cover backdated pay and money that should have been included in the lump sum they received on retirement.

A GP with a £33,000 pension can thus expect a £6,600 rise in his or her annual income, and a one-off payment of more than £37,000.

GPC deputy chairman Dr Richard Vautrey said top-ups would be paid into pensions 'by the first quarter of 2009'.

He added that it was in the DoH's interest to settle the matter quickly, pointing out that: 'The longer the government leaves it, the more interest it owes.'

jonn.elledge@haymarket.com

Comment below and tell us what you think

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register

Already registered?

Sign in

Follow Us:

Just published

GMC to restart fitness to practise cases and PLAB tests within weeks

GMC to restart fitness to practise cases and PLAB tests within weeks

Fitness to practise cases paused during the coronavirus pandemic will restart this...

NHS England confirms plan to add practice managers to £20,000 golden hello scheme

NHS England confirms plan to add practice managers to £20,000 golden hello scheme

NHS England hopes to extend the £20,000 golden hello scheme for first-time partners...

COVID-19 risk assessments could devastate fragile GP workforce in parts of England

COVID-19 risk assessments could devastate fragile GP workforce in parts of England

COVID-19 risk assessments could devastate the threadbare primary care workforce in...

GP trainees still paying thousands for NHS levy Boris Johnson promised to scrap

GP trainees still paying thousands for NHS levy Boris Johnson promised to scrap

GP trainees are among overseas NHS staff continuing to face demands for thousands...

GP fear surge of avoidable illness as patients skip routine vaccinations in pandemic

GP fear surge of avoidable illness as patients skip routine vaccinations in pandemic

Patients have been urged not to skip routine vaccination amid concerns the COVID-19...

GPs plan drive-through flu clinics amid COVID-19 safety fears

GPs plan drive-through flu clinics amid COVID-19 safety fears

GP practices are planning drive-through flu clinics to maximise uptake of jabs during...