PENSIONS

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PENSIONS

• Old Age or Bust
• Tony Chatfield

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1946 National Insurance Act

• Introduced a Welfare State
• Pension System
• Where for Every 5 people paying in, 1 took out
• People paid approximately 5 of their wage
• Led to the NHS Act (led by Nye Bevan)
• Started the NHS on 5th July 1948
• Resigned in 1951, due to the introduction of
  Charges to the NHS

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I Have a Dream of Retirement

• With good health
• Money providing a quality of life
• Spare capacity for luxuries
• With experience the reality has become a
  Potential
• NIGHTMARE

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Pensions

• People Think of Old Age Retirement
• Nest Egg for a Rainy day
• Dreams of a Holiday Home
• New Car
• New Hobbies
• Thats just a Dream

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Time we woke up
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Instability in Private pensions
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Where Pensions Endowments have failed

• The answer has been to sell a top up, to meet the
  failure of the plan/policy
• Question?
• If the first plan or policy is failing, Whats
  the point of buying an additional one?

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What about us?

• NHS Staff in General, and specifically Ambulance
  Staff.
• Does the NHS Pension Scheme offer Protection?
• Is it Safe?

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The NHS Pension Scheme

• Probably one of the Most secure in the UK
• Is Index Linked
• Is a Final Salary Scheme (Best 365 days of the
  last 3 years)
• Is a DB (Defined Benefit) Scheme (based on your
  length of service salary)
• Works on a contributory basis (where both
  employer employee pay into the scheme)
• Can be added to, with AVCs
• Includes the Injury Benefit Scheme, Often called
  The best kept secret

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The History so Far

• 1973 - Unions present evidence to Government
  requesting Ambulance staff retire at a similar
  age (55 yrs)to Fire Service Staff. Government
  agree to principle start a working Party
• 1975 - DHSS agree to consider Ambulance Staff
  for earlier retirement
• 1981 - Issue raised again by Unions, Secretary of
  State agrees, working Party re-convened, Meets in
  1983
• 1991 - Ministers finally accept Working party
  report, options to be discussed for changes to
  retirement/superannuation scheme. A group to meet
  to arrange this. (? Never Happened)
• 1996 - ASA re-arranges the establishment of a
  working group. Reports issued in 1997 1998.
• Yet Still no Facility for Staff to Retire at 55
  with NO Loss of Benefits

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The ASA...

• favoured options and means for both a reduction
  in the retirement age and an improvement in the
  pension arrangements for this staff group.
• Highlighted Factors
• Wear Tear effects of many years of lifting
  and Handling
• Ambulance staff spend more time driving on 999
  calls than other Emergency Services (Increased
  mental stress)
• Greater susceptibility to work place accidents
  (due to uncontrolled environments)
• Disturbed sleeping eating patterns from
  shift-work/Busy Shifts
• Added Psychological effects of responsibility of
  Paramedic Status, including increased public
  expectation.
• Increased On the road time due to geographical
  deployment

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The Realism!

• Only 1100 Ambulance Staff reach 65 1
• Average Length of EMS Service is around 23 yrs
• The Average Retirement age is 54 yrs2
• Nearly ALL Staff Retire on Ill Health
• Every year we bury colleagues,with figures
  showing around 2 of staff die whilst in service.
  (Ambulance Staff are twice as likely to die
  compared to Nursing/Midwifery staff) 3
• A Large number of staff die within 5-8 yrs of
  actual retirement.4
• 1 Cast Aside article by Patrick Butler 2000
• 2 ASA Report of the Pensions retirement Age
  Working Group 1997/1998
• 3.4 The 1983 Report form the working party on
  the problems of long serving Ambulance staff

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Fact

• In the NHS, 3.85 people per 1000 staff retire per
  Annum on Ill Health Grounds
• In the Ambulance Service up to 17 staff per 1000
  per Annum. 1
• Up to 4 times the average of the NHS
• 1 Paul Robinson NHSPA DWP Pension Review 7/5/03

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Realism

• With the Average retirement age of 54. Even if we
  lower the retirement age to 55, some staff still
  wont reach this target!

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Where Does This Leave Us?
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A Review of the NHS Pension Scheme

• On Behalf of
• Employers
• The NHS Pension Agency
• WAG
• This is led by The NHS Confederation

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The Review

• Coincides with the introduction of A4C
• Question?
• Is this not as important as Agenda for Change?

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First Real Opportunity for 30 Years?

• This may be our only opportunity to improve the
  working lives of Ambulance Staff!

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An Acceptance for staff to Retire at 55?

• This will cost more, as staff may cover the cost
  of being able to finish earlier
• May not be affordable for other lower paid jobs
  other than EMS/Management
• May Not be Acceptable Due to the Governments
  Proposal to stop Age Discrimination, and Extend
  the Retirement Age

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What Next?

• Copy Best Practice from across the UK
• Learn from others to IWL
• A review to allow alternate career pathways,
  rather that Ill-Health retirements on Capability
• Transitional roles through the KSF
• An increase in the Step-down Return of older
  staff
• Push for NO increase in retirement age to 65,
  remain with an option to retire at 60 with NO
  loss of benefits

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Review Recommendations so far

• Phased Starts similar to Mortgage providers
• The possibility of Critical Illness cover
• Increased Death Benefits
• Changes to DB1 Benefactors for multiples.
• The possibility of a 60ths Scheme
• A Multi -Tier scheme so people can pay for what
  they can afford
• Add/Bolt on improved benefits (E.g. Health Cover)

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ALL OF OUR EGGS ARE IN ONE BASKET, WED BETTER
NOT DROP IT!
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UNISON Branches of the Welsh Ambulance Service

• We are the ONLY Branch to be actively involved in
  both the DWP Green Paper consultation Process,
  and the NHS Confederation led review of the NHS
  Pension Scheme.
• Full Consultation will commence in the Autumn,
  Use YOUR Opportunity to ensure Ambulance Staff
  get Fair Retirement

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Join our Campaign A Drive for 55 Fair
retirement for Ambulance StaffVisitwww.unison-w
elsh-ambulance.co.uk