Doctors face missed pension increases
Inflationary uplifts to pensions are several years behind
By Edie Bourne
Many doctors are missing out on the inflationary increase due on their NHS pension, according to specialist financial planners Cavendish Medical.
The specialist medical financial company has been checking the pensions statements of new clients and seen ‘many examples’ where the standard revaluation figure is wrong.
Doctors contributing to the 2015 NHS pension scheme – who have not had a break in pensionable service of five years or more – should see their pension revalued every year with inflation.
This is at the consumer price index (CPI) rate of inflation plus 1.5%. But many are not receiving their rightful sum due to payment delays from NHS Pensions.
George Uglow
George Uglow, financial planner at Cavendish Medical, told Independent Practitioner Today: ‘These errors can be difficult to spot, particularly when inflation was low. Now we have seen higher inflation for the last two years, the missed amounts are much more evident.
‘We have discovered that clients who have just started working with us have not received their inflationary increases for several years. It really is worth getting your own position thoroughly checked.
‘This issue can be problematic for retired doctors. They may have drawn their benefits several years ago but have not received the yearly uplift they should have.
‘Once you retire, your pension is protected against inflation by the application of “Pensions Increase” which is linked to the CPI.
‘The current CPI rate used is from last September, when it stood at 10.1%. The rate of CPI from September 2023, which will be applied from next April, is 6.7%.’
The NHS Business Services Authority has been informed of the issue, but has been slow to respond. The BMA is also talking to the authority to encourage corrections.
Mr Uglow added: ‘Doctors are already facing complex issues with their pay and pensions – not only the current pay dispute but the McCloud remedy, too, which could amend years and years of pension taxation calculations.
‘They want to be able to rely on the figures and statements they receive and not have to chase missed payments on the pension they are due.’