HCSA News January 2012 Issue 63
Which way on Pensions?
Your Pension Your Choice NHS Pension “Final Offer” The Way Ahead: Eddie Saville Farewell, Stephen news | views | people | contacts
HCSA News This Issue 4
Cover: Which Way by David Woods Published By: I.O Design Ltd www.iodesign.co.uk on behalf of the HCSA
HCSA News New Education & Standards Chairman 4 HCSA goes all social 4 View NHS “Final Offer”: What it means to you The Way Ahead: Eddie Saville takes the reins
Editorial: Michael Barratt Ian Smith Steve George Design - David Woods
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Farewell, Stephen 2 HCSA Your Pension, Your Decision
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Farewell, Stephen In the last edition of HCSA News it was reported that Stephen Campion, HCSA Chief Executive, had announced his intention to retire. Stephen joined the Association in April 2000 after a distinguished career in Hospital Management. Many members have benefitted from Stephen’s extensive knowledge, expertise and negotiating skills. He has always been willing to give advice, guidance and representation to those members who have turned to their Association for support. He has been a solid rock on which numerous HCSA Presidents, Councils, Committees, HCSA Members and staff have come to depend. Stephen will retire at the end of March 2012. Members wishing to contribute towards a gift to him are invited to send a cheque payable to “HCSA” which can be sent to the Overton Office at “Freepost HCSA”.
HCSA News Issue No.63 - January 2012
NHS Pensions HCSA Members Web Survey open to 5th Feb 2012 Go to www.hcsa.com
Your Pension, Your Decision
The HCSA needs to know the opinion of all its members - so that it can act to support you. So itâ€™s crucial that you tell us your views NOW!
In this special issue of HCSA News Negotiations over pension fund we explain the current stage of changes in the health sector negotiations and give you the have reached a final stage with opportunity to give us your views. Government making its final offer. Go to Page 5 for a full explanation of Do you think we should accept it or the issues and then be sure to cast reject it ? your vote.
HCSA News Issue No.63 - January 2012
+ Education and standards: New Chairman takes over The HCSA Education and Standards SubCommittee has been re-launched under the new Chairmanship of Professor Amr Mohsen. As part of this we are seeking to engage as widely as possible with all HCSA members who wish to be involved in reviewing and influencing the feedback that is provided on your behalf on national documents regarding the profession. Henceforth we will be sending out such documents, or links to them, by email for members to read and comment on. In December 2011 a consultation document regarding the review by the General Medical Council of the Good Medical Practice guidance 2012 was emailed to all members for whom\ we have an email address. Many thanks to those members who have responded to us for your comments. Further documents are expected to follow in due course. However, we do not hold email addresses for all our members. If you have not received this and wish to take part and contribute to this and other important consultation exercises, please contact the Overton office or email firstname.lastname@example.org
= HCSA gets all social! HCSA has been experimenting with ways of exploiting new services such as Twitter and Facebook to complement existing communications channels for reaching its membership. For relevant news breaks and for updates on what we’re up to on your behalf, the immediacy of spreading the word is becoming ever more important. “Social Networking sites can now be combined to keep in contact with as many of our members as possible, with live topics such as Exec View and members’ polls”, says Steve George, HCSA’s Head of Business Services. We are now creating a Facebook group for members only to complement the existing web site to enable our members to keep in touch. These new additions will be rolled out in January and evolved in line with new HCSA website channels.
If you have any news or views you want our members to know about, then please get in touch with our editorial team at: e-mail: email@example.com or call our head office on 01256 771777
HCSA News Issue No.63 - January 2012
The NHS Pensions “Final Offer” What it means to you Here we explain more about the Heads of Agreement reached by the Health unions, including the HCSA, with the Department of Health and NHS Employers following a series of meetings culminating on 19th December 2011. At present these proposals will apply in Englan and Wales, although the UK Government expects that the arrangements in Scotland and Northern Ireland will mirror them. Following this, the Government’s “final offer”, the HCSA has agreed, along with other health unions, to consider the government’s final proposals and has put these to the HCSA Executive Committee. The Executive Committee has agreed to conduct a survey of all HCSA members seeking your views The key elements of the proposals are: • All pension benefits earned up to April 2015 (referred to as accrued rights) will be protected • Scheme members who are less than 10 years from retirement (their current Normal Pension Age) as at 1st April 2012 are protected from these changes, except for the Government imposed contribution increases. This protection also applies to members with Special Class status and Mental Health Officers • Further limited protection for members within 13.5 years of their Normal Pension Age • From 2015 a pension scheme based on career average with an improved rate of accrual • For service from 2015 a Normal Pension Age linked to the State Pension Age • Future pension increases in retirement linked to the Consumer Prices Index • Extension of the “Fair Deal” agreement so that members transferred from the NHS
under the TUPE Regulations can retain membership of the NHS Pension Scheme, with a commitment to review if this can apply to “Any Qualified Provider” status • Increased member contributions • Further discussions to be held on how future increases will be distributed in years two and three (i.e. April 2013 and 2014) These are explained below. It is proposed that there will be a new NHS Pension Scheme from 2015. All benefits built up to then will be fully protected and those benefits will be linked to final salary when members leave the scheme. All future benefits (for those not protected) built up after 2015 will be on a career average basis on salary paid from April 2015 until retirement. These are also defined benefit schemes so you will continue to able to receive a guaranteed pension in retirement. Each year’s service will be uplifted by CPI plus 1.5% per annum. Current scheme members within 10 years of their Normal Pension Age (NPA) as at April 2012 will be “fully protected” except that they will have to pay any increased employee contributions applicable from April 2012. These members will be able to retire at their current NPA without loss. They will effectively continue to build up pensions on a final salary basis. Special class and Mental Health Officer status members will retain their NPA of 55 and MHO’s will continue to “double up” as now. This protection covers around 400,000 NHS staff around one third of the total membership. Current scheme members near the 10 years protection period as at April 2012: To avoid a “cliff edge effect” some people outside 10 years will receive protection, known as “tapering”. This means that those who are between 10 years and 13.5 years from their NPA will switch to the new career average scheme at a date between 2015 and 2021. These members will receive some protection and will lose 2 months of protection for every month they are beyond 10 years from their NPA. At the end of the period they will move to the new pension scheme for future service. This will apply to those who are up to an additional 3.5 years beyond 10 years. An example is shown (see box). This protection covers approximately 100,000 staff.
HCSA News Issue No.63 - January 2012
Example of the tapering arrangement would work: Years to current NPA (less 10 years) Date of switch to new scheme 3.5 years and over 3 years 2.5 years 2 years 1.5 years 1 year 0.5 years
1st 1st 1st 1st 1st 1st 1st
April April April April April April April
2015 2016 2017 2018 2019 2020 2021
A member who is age 49 years and 11 months as at 1st April 2012 will have a switch over date of 1st February 2022. Members who fall outside of the protected categories (as described above) will move to the new pension arrangements on 1st April 2015, with a retirement age equal to the state pension age. Previous service up to that point will be fully protected and salary on retirement will be used to set the pension for this period of service. All service after April 2015 will be built up on a career average basis at 1/54ths accrual and uplifted annually by CPI plus 1.5% per annum. Staff transferred out of the NHS: it is proposed that where service are contracted out under the TUPE arrangements, members will be able to remain in the NHS Pension Scheme. This would replace the current “Fair Deal” arrangements where employers only have to provide a scheme which is “broadly comparable”. Where these services are transferred subsequently to another employer, members will still be able to remain in the NHS Pension Scheme. A tripartite review between unions, NHS Employers and Department of Health on the implications of working longer, particularly for demanding jobs and occupations within the NHS. The Government has also offered a 25 year guarantee if these proposals are accepted regarding no further changes to scheme design, benefits or fundamental changes to the scheme.
will be borne by NHS Employers. As an additional issue numerous members have asked about the added years contracts they are buying or have purchased. We have made it clear that we would expect that members with added years contracts that expire at age 60 would be able to take these at age 60. Agreement in principle has been reached with the regulation and financial implications still requiring consideration. Commentary All unions have agreed that the Heads of Agreement is the best that can be achieved through negotiation. This does not mean that we have either accepted or rejected them. That is up to you as the members. Whilst this is not the deal the HCSA would have wanted, it is better than that which was offered at the start of talks and is in our view (along with the other unions) that this is the best that can be achieved through negotiation. However the Government has made it clear that this is its “final position” on the arrangements to apply from 2015. This was confirmed by the Secretary of State to Parliament on 20th December 2011. The proposals as they stand are only available at the moment. If they are rejected the Government has stated that they will be withdrawn. In particular the offer regarding protection for those within 10 years of retirement and the tapering proposals could be at risk. The accrual rate of 1/54th now proposed for the career average scheme for service after 1st April 2015 compares with the original offer made by the Government of an accrual rate of 1/100ths then improved to 1/65th. This improvement has been obtained through these talks. In the interest of balance we set out below some of the arguments both for and against the proposals as they stand:
The Heads of Agreement also states that should overall scheme costs increase in the future, the first additional 2% of any increase
HCSA News Issue No.63 - January 2012
Some questions and answers
• Protection for those within 10 years of NPA • Additional tapering protection for up to 13.5 years from NPA • Extension of “Fair Deal” protection on transfer to providers outside of the NHS • Government’s final offer which could be withdrawn and inferior arrangements imposed • The ramifications of industrial action at such time of austerity Against • Pay more; Consultants and senior doctors are being asked to pay substantially more in terms of contributions. Consultants now pay 6.5%, 7.5% or 8.5% depending on earnings but from 2014 those currently paying 8.5% it is proposed that they will have to pay 14.5% • Work longer: Linkage of Normal Pension Age to State Pension Age meaning that young Doctors today could be working at age 68 • Receive less; Ending the final salary scheme replaced by a career average scheme which significantly impacts upon Consultants Next steps We are aware that members understandably feel angry at this final offer and what it entails. It is clear that the choice we face is between accepting this final offer or taking sustained industrial action. With the intransigence and hostility of the Government – supported to a large extent by public opinion – simply saying “No” and hoping for some improvements to be delivered is not a credible path. Also in our view, one or two “days of action” or overtime ban will not be sufficient to sway the Government from this course. In asking members to complete this survey you should be under no illusion of what rejecting the proposals means and the course of action to follow. The HCSA Executive Committee will be reviewing the results of this survey at its meeting on 8th February 2012 and will decide future course of action from there. It is vitally important therefore that all members complete this survey. The survey will close at midnight on Sunday 5th February 2012. Please take part in this survey which can be found at www.hcsa.com
Q. Why has the HCSA not provided a pension calculator so I can work out exactly how these proposals will affect me? A. The HCSA is well qualified to advise members of the pension proposals having been engaged in talks with Government and NHS Employers. However we recognise that pension calculations are notoriously complex and we would not want to mislead or wrongly advise members on their financial planning. We do not hold members pay and salary records, know whether they have purchased added years, or whether they have “protected status” and neither do we know their full NHS employment history. The HCSA is not an independent financial adviser as recognised by the Financial Services Authority and would be at serious risk of litigation should our calculations prove to have been incorrect, even if made in good faith. Q. What are other Unions doing? A. With the exception of one, all NHS Trade Unions are canvassing the views of their membership Union negotiators believe this is the best outcome that can be achieved following lengthy talks and concessions made by the Government. However, The Unite Trade Union Executive has openly rejected the offer. But on a matter as important as this the HCSA is not prepared to accept or reject the offer without consulting its membership. Q. Why are you not advising us what decision to take? A. Because whatever line is recommended there will be those who will agree with it – there will be others who disagree with it! On the one hand we believe this is the best deal that can be struck; on the other we must respect the views of those who find the “work longer, pay more and get less” unacceptable. Once we know what your views are through the survey we will certainly advise members over the next steps to take. Q. What should I be doing now? A. Let us have your answer to the survey NOW. Once you have done that please check your membership details on the web-site and update if necessary, so we are ready to organise a formal ballot for industrial action should we have a mandate to do so.
HCSA News Issue No.63 - January 2012
The Way Ahead MICHAEL BARRATT talks to EDDIE SAVILLE on the eve of his appointment as Chief Executive of the HCSA when Stephen Campion retires at the end of March
His chosen ground for our meeting was the TUC headquarters, where he was meeting with other public sector union leaders. I arrived there just after a noisy demonstration against the Governmentâ€™s pension plans had moved away. Eddie was there in his capacity as the chair and lead negotiator for all NHS unions (including the HCSA) on the pension dispute. It all sounded militant stuff. First impressions though can be a long way from the truth. Eddie Saville is far removed from the caricature of a tub-thumping management-basher. Yes, heâ€™s passionate about what he does (and, incidentally, about his East End roots, though
HCSA News Issue No.63 - January 2012
he hates the word “passionate”). But he explains his aims in the mildest of manners and with a warm smile. And, as we shall see, he recognises the special needs of consultants and specialists, different as they are from other Health Service staff that he has also represented. Eddie, now 54, began his working life in the Civil Service and very early on joined the union. In double-quick time he found himself on the local branch committee, and then full-time secretary of a big branch in the Department of Employment thrust into high-level meetings with Ministers. He has been a familiar figure in the corridors of power ever since. Eddie’s progression through the union movement led him to BIFU (the bankers’ and insurers’ union) in the days when – he’s amusingly quick to emphasise – bankers weren’t all hate figures. He became a key negotiator in the then Midland bank and was renowned for his organising skills. Then came the actors union Equity, where he was Assistant Secretary leading the variety department representing professional performers. He was a popular officer and worked hard to expose sharp practice throughout the industry. He represented national and international performers in high level, high value contract negotiations and introduced a national contract that gave rights to thousands of performers across the UK. He moved on to his most recent role for the Society of Chiropodists and Podiatrists where he was the Director of Employment Relations, and running the affairs of the union, and representing public and independent sector practitioners. He led them from a union which had a low profile and limited influence to one which is now regarded as a key player in the NHS and wider trade union arena. He comes to the HCSA with a successful track record as a trade union leader so what can we expect now?
HCSA’s advisory service is at a very high level and will look to exploit the social media scene, the website and work on a package of fringe benefits and legal services. As for influence, Eddie points out that although the HCSA is affiliated to the TUC, it is not a formally recognised trade union by the NHS and does not hold a seat at the NHS staff council. He believes the HCSA should have a seat and take its place at the negotiating table. That’s one of the priorities”. He also recognises the major challenges that lay ahead with the health service reform. He qualifies all of his ambitious plans by emphasising that, ultimately, it’s the Executive of the HCSA that will set the objectives. He comments that there is a great team of hard working and valued staff at the HCSA who will continue to focus their efforts on promoting and protecting member’s interests both inside and outside of work. Above all he is keen to get out and meet members and wants listen to their views and aspirations for the HCSA. A family man, Eddie has two daughters, two step-daughters and - he tells me with special pride – a granddaughter. If he has any free time, he likes to spend it on the golf course. It’s from there that I cull my personal impression of the man and his attitude to the job he is taking on with the HCSA. “I drive straight down the middle” Finally he tells me a man who knew him well when at equity once told him, “You’re like a stick of Blackpool rock, break you in half and you will have Trade Unionist written through and through”
He tells me he has a three-year, three-pillar strategy. He wants to GROW THE PRESENCE of the Association in various ways including the continuing growth of membership, retaining existing members and working on the PR and communication of the Association. He seeks to WIN GREATER INFLUENCE by working with other partners, exploring ways to create Parliamentary activity, and give the HCSA higher profile; and he wants to IMPROVE SERVICES to members. He recognises that the HCSA News Issue No.63 - January 2012
EXECUTIVE COMMITTEE President Chairman of Executive Immediate Past President Honorary Treasurer Honorary Secretary Honorary Secretary Honorary Secretary Honorary Secretary Honorary Secretary Honorary Secretary Chairman – Ed & Stan S-C Independent Healthcare
Dr. Umesh Udeshi Dr. John Schofield Mr. Christopher Welch Dr. Mukhlis Madlom Dr. Sati Ariyanayagam Mr. Gervase Dawidek Dr. Tom Goodfellow Dr. Bernhard Heidemann Dr. Cindy Horst Dr. Ross Welch Prof. Amr Mohsen Mr. Christopher Khoo
MEMBERS EDUCATION & STANDARDS SUB-COMMITTEE Chairman - Prof. Amr Mohsen Dr. Umesh Udeshi Mr. George Fowlis Dr. Mukhlis Madlom Dr. Bernhard Heidemann Dr. Hiten Mehta Dr. Bernard Chang Mr. Olanrewaju Sorinola Mr. Christopher Welch North East Strategic Health Authority Mr. Rotimi Jaiyesimi, FRCOG LL.M (Medical Law) firstname.lastname@example.org Dr. Olamide Olukoga, FFARCSI OOlukoga@aol.com Dr. Paul Cooper, MBBS FRCA email@example.com North West Strategic Health Authority Dr. Magdy Aglan, FFARCSI FRCA firstname.lastname@example.org Mr. Ian Harvey, FRCS email@example.com Mr. Ahmed Sadiq, MRCOphth FRCS firstname.lastname@example.org Professor Nigel Thomas, FRCR email@example.com Yorkshire and The Humber Strategic Health Authority Dr. Mukhlis Madlom, FRCPCH FRCP firstname.lastname@example.org Professor Amr Mohsen, FRCS(T&O) PhD email@example.com Mr. Peter Moore, MD FRCS firstname.lastname@example.org East Midlands Strategic Health Authority
FINANCE SUB-COMMITTEE Dr. Mukhlis Madlom – Chairman Dr. Umesh Udeshi Dr. John Schofield Dr. Robin Loveday [Trustee] Mr. Robert Tranter [Trustee] Mr. Michael Kelly [Trustee] HCSA OFFICERS AND STAFF Chief Executive Mr. Stephen Campion Head of Business Services Mr. Steve George Manager, Northern Region Mr. Joe Chattin Business Manager Mrs. Sharon White Manager, Advisory Service Mr. Ian Smith Membership Secretary Mrs. Brenda Loosley Midland Regional Officer Mrs. Annette Mansell- Green Employment Services Adviser Mrs. Gail Savage Office Telephone: 01256 771777 Facsimile: 01256 770999 E-mail: email@example.com
Mr. Olanrewaju Sorinola, FRCOG firstname.lastname@example.org Dr. Umesh Udeshi, FRCR email@example.com
South West Strategic Health Authority East of England Strategic Health Authority Dr. Sati Ariyanayagam, FRCOG Sati2411@gmail.com Mr. Christopher Goodfellow, FRCOG firstname.lastname@example.org Mr. Andrew Murray, FRCS email@example.com Mr. Hugo Taylor, FRCS(Eng)FRCS(Gen) Jackie.Jordan@btuh.nhs.uk London Strategic Health Authority Mr. Gervase Dawidek, FRCS FRCOphth firstname.lastname@example.org Mr. George Fowlis, FRCS FEBU email@example.com. Dr. Patrick McGowan, FRCA firstname.lastname@example.org Professor Peter Dawson, FRCP FRCR email@example.com
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South East Coast Strategic Health Authority
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HCSA News Issue No.63 - January 2012
Dr. William Loan, FRCS FRCR Willie.Loan@bch.n-i.nhs.uk Specialist Registrar National Representative Dr. Imran Rahman, MBBS firstname.lastname@example.org Non-Consultant Career Grade National Representative Dr. Helmy Fakhry, MB ChB email@example.com
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