What is pension abatement?
Abatement is the process within the NHS pension scheme that could restrict your pension payment if you return to work in the NHS after some types of retirement.Why have the rules changed and what’s happening now?
Before the COVID-19 pandemic, pension abatement had an impact on members who returned to work after retiring. If your salary plus your pension exceeded your pre-retirement earnings, your pension would be reduced pound for pound.
During the pandemic, a decision was made to suspend the abatement rules to increase available staffing levels. Following pressure from the RCN and others, the government agreed to a further extension to 31 March 2025 in recognition of the NHS workforce staffing crisis.
Why is this important now?
As part of the latest pay offer for NHS staff in England, the UK government says it intends to make this change permanent and that it’ll consult on this shortly.
NHS staff who work on an Agenda for Change contract in England can have their say on this, and other parts of the pay offer, by voting in our own consultation open until 9am on 14 April.
Why should you care?
Safe staffing is important for all members whatever their age. If abatement rules are reintroduced, people may retire again or decide not to return to nursing after retirement.
Any measure that has the potential to reduce the number of nursing staff is not in the interests of patients or the wider nursing workforce staff so even before the pay offer was made, we were lobbying for a further extension to the current abatement changes.
Do the abatement rules apply across the UK?
Yes, although the current RCN pay consultation relates to NHS staff working on Agenda for Change contracts in England.
What’s the RCN’s position on abatement?
We say that restoring abatement arrangements is likely to decrease the available workforce which will compound existing staffing shortages across the NHS.
Where can I get pension advice?
Pensions and planning for retirement are both areas that require specialist advice. If you’re considering alternative pension arrangements or additional pensions, you may benefit from talking to a professional financial adviser.
Members of the RCN are entitled to a complimentary, no obligation initial financial review from Quilter Financial Advisers.
