Pension changes save employers £430m a year

Pension scheme changes that were agreed between NHS Employers and NHS trade unions will save employers £430m a year, according to a government actuary report published in December.

The report says that without the changes, the employer contribution rate would have increased from 14 per cent of pensionable pay to 15.3 per cent, costing £430m a year.

These savings will help to secure the long-term financial stability of the scheme, while continuing to meet the needs of today's NHS and its staff. The new arrangements come into effect on 1 April and include a normal retirement age of 65 for new members joining on or after this date, as well as new tiered contribution rates for existing and new members.

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