Official Report 778KB pdf
National Health Service Superannuation and Pension Schemes (Miscellaneous Amendment) (Scotland) Regulations 2024 (SSI 2024/272)
The next item on our agenda is consideration of a negative instrument. The purpose of the instrument is to amend the regulations on the NHS superannuation and pension schemes in Scotland. The instrument introduces legislative changes to the schemes, including retirement flexibilities, amendments to abatement rules and final pay controls, changes to the 2015 regulations regarding inflation and other miscellaneous amendments. The policy note states that
“the instrument also introduces a new employer contribution rate from 1 April 2024 and reforms the employee contribution rates in the NHSPS(S) in two phases from 1 October 2023 and 1 October 2024.”
The Delegated Powers and Law Reform Committee considered the instrument at its meeting on 5 November 2024 and made no recommendations in relation to it. No motion to annul has been received. I know that Sandesh Gulhane wishes to make some comments. Before I pass over to him, I put it on record that I am a contributor to an NHS superannuation and pension scheme.
I declare my interest as a practising NHS GP and, obviously, as a contributor to the NHS pension scheme.
I have a number of questions that I would like to put on the record and to which I would like answers from ministers, where appropriate. I would like to know what the anticipated financial impact of the amendments are on NHS staff pensions and, more importantly, on the overall sustainability of the pension schemes. What is the long-term strategy for ensuring the financial sustainability of NHS pension schemes in Scotland, given the rise in contribution rates? How do the amendments align with broader public sector pension reforms in Scotland and how do they compare to similar changes across the rest of the UK? To what extent would the changes to pension contributions and retirement flexibilities influence NHS staff recruitment and retention in Scotland? Can we explain the rationale behind the introduction of the final pay controls and what impact they will have on pensions for NHS staff who are near retirement age?
My final comment is that, with the changes that we see here, people who use the NHS pension scheme are totally and utterly unable to easily see their pension and to understand what is happening and what tax implications their pensions might have. That is important, because we are at a time when our NHS is on its knees and we need to make it easier for staff to do more work. However, what can happen is that staff who do more work will be landed retrospectively with a huge tax bill because of pension contributions, which means that they have, in effect, paid to go to work and to help us in our NHS. There are simple changes that can be made to stop that happening, and I urge the Scottish Government to look at those, both to make that easier and to allow people to see their pensions, as I have been contacted by a number of constituents who are unable to do so.
Thank you, Mr Gulhane. I take it that by “some staff” you are referring to medical staff?
Yes.
I see no objection to the committee writing to ministers and asking for relevant clarification on some of those issues. Are you content with that?
Yes.
Thank you very much. I propose that the committee does not make any recommendations in relation to this negative instrument. Do members agree?
Members indicated agreement.
Thank you.
At our next meeting, on Tuesday 19 November, we will continue taking oral evidence as part of the committee’s stage 1 scrutiny of the Assisted Dying for Terminally Ill Adults (Scotland) Bill. That concludes the public part of our meeting.
11:44 Meeting continued in private until 11:57.