Latest Update

Date: 15/03/2022

LOCAL GOVERNMENT PENSIONS UPDATE

GMB Members in Local Government:

Following the delayed implementation of this year’s pay award some staff are seeing decreases in their take home pay because they are moving up a pension banding and therefore have to pay pension arrears. The main groups affected are those on CO1, PO3 and PO6 as per the table below.

There will also be backdated tax, NICs and student loan (where applicable) deductions also:

*Grade*	*SCP*	*Back Pay Due*	*Underpaid Pension*	*Effective Backpay*	*Numbers impacted*
CO1	13	363.11	145.19	217.92	150
PO3	33	592.57	101.54	491.03	87
PO6	43	751.41	730.00	21.41	425

This is an unfortunate consequence of the fixed pension band contribution structure. We are aware of the situation and it is something we are campaigning very hard to address by seeking to dynamise the pension bandings so that they increase in line with the pay awards and therefore avoid this cliff edge effect.

Current Pension Bandings
Actual Pensionable Pay		You pay a contribution rate of:
Up to	£14,600	5.5%
£14,601 -	£22,900	5.8%
£22,901 -	£37,200	6.5%
£37,201 -	£47,100	6.8%
£47,101 -	£65,900	8.5%
£65,901 -	£93,400	9.9%
£93,401 -	£110,000	10.5%
£110,001 -	£165,000	11.4%
£165,001 -	Or more	12.5%

Date: 17/02/22

NHS PENSIONS: COVID UPDATE

The Department of Health & Social Care HSC has published a new consultation today on proposals to continue the temporary suspension of certain NHS Pension scheme regulations to support retired staff to return to the NHS.

The temporary suspensions are due to end on 24 March 2022 but the GMB and other trade unions had expressed concerns that, in view of ongoing staff shortages, the measures are still needed to support the continuing response to the pandemic.

Under the new proposals, the following regulations will remain suspended until 31 October 2022:

The 16-hour rule in the 1995 Section of the NHS Pension scheme – pension payments are suspended if an employee works more than 16 hours per week in the first month after retirement.
Abatement for special class status holders in the 1995 Section – pension payments are reduced if an employee returns to work before age 60 and their earnings plus their pension exceed their pre-retirement earnings.
Abatement in the 2008 Section and 2015 Scheme for those who have drawn down a portion of their pension – pension payments are reduced if an employee who has taken part of their pension earns more than 90% of their earnings before the draw down.

Full details of the consultation proposals can be found here and the consultation closes on Tuesday 1 March 2022.

GMB will be supporting the joint response being prepared by the NHS Scheme Advisory Board. There are only 2 questions to answer (as below) and our answer to both is AGREE.

Do you agree or disagree that the temporary pension easements currently provided by section 45 of the Coronavirus Act should be continued beyond the planned expiry of the act from 25 March 2022

Agree

Disagree

I don’t know

Do you agree or disagree that the continuation of the easements until 31 October 2022 is a reasonable length of time?

Agree

Disagree

I don’t know

If you have any questions about the above, please contact George Georgiou, National Pensions Organsiser at george.georgiou@gmb.org.uk

WHAT CAN WE DO & HOW CAN WE HELP?

Decent Pensions for all are a Number 1 Priority for the GMB and the Trade Union movement in general. Decent pensions alleviate pensioner poverty and support local and national economies. The GMB works at all levels to ensure that members and society benefit from this simple fact and as a Department we seek to emphasise the importance of pensions and embed it into the organising work we do.

We represent the GMB on the National Scheme Advisory Boards of the NHS, Local Government and Civil Service Schemes. Working with employers, actuaries, government departments and other Trade Unions to ensure that pension schemes remain healthy and are able to provide the deferred wages promised.

In the private sector we sit on the boards of company pension schemes and give support, advice and guidance to GMB reps who also sit on them aiming to debunk some of the myths around the industry.

We give advice, support and guidance to officers, activists and individual members on most aspects of how pension schemes operate and what they might expect from their pension. We aim to support those who need reassurance or just want questions answered.

We provide some legal advice on some aspects of pension schemes and keep abreast of any changes to the pension’s legal framework.

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