Fears local nurses mayface pension arrears

The workers may be left out of pocket after the Department of Health (DoH) asked its Payroll Services Centre to implement the 3 per cent pay rise, backdated to last April 2018, on November 22.

The pay rise busts the below inflation public sector pay caps of 1 per cent endured by nurses and other health care workers for the past several years, is good news for workers and is due to be felt in this month’s pay packet.

However, SDLP health spokesman Mark H. Durkan fears some workers may be left worse off when, by moving up they pay bands ,they also move onto significantly higher pension contribution rates.

Last year 972 Western Trust staff were caught up in a similar pay and pension review with some Derry workers suffering reductions of up to £200 from their August pay packets with the average loss in the health authority per affected worker estimated at £120.

Mr. Durkan has written to the DoH Permanent Secretary Richard Pengelly, stating: “You may recall I raised this issue last year and it is disappointing that steps have not been taken to avoid a repeat of the situation where some staff will be worse off as the result of a much deserved and hard fought for increase in pay.”

The Department told the ‘Journal’ that 746 individuals may be in the position where their arrears of pay back to April 1, 2018, do not cover pension contributions required.

It said it won’t know the exact position until the February payroll is completed but that employers were making arrangements to communicate directly with these staff.

None of the staff affected, however, will be hit with a large pensions arrears bill that will dock a significant sum out of their pay pack on one go.

MITIGATION ARRANGEMENTS

A DoH spokesperson said: “If any staff member experiences the position were a backdated pay increase does not cover backdated pension arrears, mitigation arrangements will be available.

“Staff will able to fund any such deficit through wage deductions over a period of up to 12 months.

“These deductions from salary go towards each employee’s pension provision – helping ensure the pension scheme is adequately funded and that staff have financial protection when they reach retirement.

“HSC employers make a 16.3 per cent pension contribution for each staff member.

“The contribution made by employees ranges from 5 per cent to 14.5 per cent, based on their total pensionable earnings. The more they earn, the higher their contribution rate may be.

“There are seven different contribution rates, based on seven earnings brackets.

“As a result, pay increases are always likely to move some staff members onto a higher contribution rate.

“A general communication to staff who may be affected has been issued, providing assurance on the availability of the mitigation arrangements.”