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It Pays to Work for UK Government: Number of NHS Fat Cats Retiring on Six-figure Pensions Soars 700% in Just Five Years

By Eowyn @DrEowyn

mafia

Daily Mail: The number of health service fat cats retiring on millionaire pensions has soared 700 per cent in the past five years. Despite the worst NHS funding crisis in a generation, six-figure payouts were made to 143 executives last year, compared with just 18 in the year 2009/2010.

The number of employees given bumper pension pots of more than £75,000 ($118,023 US) also quadrupled in the same time frame. Meanwhile, the number of £50,000-plus retirement deals has more than doubled, despite a £30billion ($47,209,500,000 US) funding blackhole. The extraordinary packages, mainly being handed out to boardroom big hitters, would pay for nearly 23,000 frontline nurses.

The revelations, obtained through a Freedom of Information request, come after it emerged that NHS bosses were given pay rises worth £35million last year. Some executives earned more than £1million. Even at hospitals with the worst standards of care directors enjoyed pay packages worth up to £5,000 a day. The average chief executive in England now takes home £185,255 in salary alone, far higher than the Prime Minister’s £142,500 pay.

Taxpayers are also being shafted by a wave of NHS bosses who are exploiting a pension loophole to cash in their retirement pots early. Some are ‘retiring’ for just 24 hours to maximise their entitlement – before returning to their posts full-time on the same huge salary as before. The provision was originally put in place to help lower-paid nurses who should be allowed to continue working part-time, in case they struggle on just their pension. But it has now become a lucrative loophole exploited by highly-paid executives. Others are being paid through personal service companies – a common tax avoidance tactic.

After the information was published by the NHS Pension Scheme, Unite’s Barrie Brown said health visitors, paramedics and school nurses could only dream of such a high sum, with the average NHS pension is just £6,000 for men – and even less for women.

‘Our members are now expected to work longer, pay more and receive less pension with the new NHS pension scheme the Government implemented on April 1,’ he said. ‘Senior staff who receive these very high pensions can opt to retire early with reduced but very good pensions. The majority of staff who prop up the NHS wouldn’t have that option.’

Hospital campaigner Sam Zair, whose 89-year-old mother Bernice was failed by the NHS, last night hit out at the huge payments. Mrs. Zair, a dementia sufferer, had been admitted to hospital with a water infection but died of pneumonia after allegedly being left on a mattress on the hospital floor.

County Councillor Mr. Zair, of Bishop Auckland, County Durham, said: ‘It is an absolutely obscene amount of money being paid out to people at the top of the NHS. It just goes to show that the money going into the NHS is not going where it is needed most. I wonder whether patient care is secondary to these people.

Chief executive of the Taxpayers’ Alliance campaigner Jonathan Isaby said the money could have paid for an army of nursing staff. ‘Pensions of this extraordinary size are a thing of the past in the private sector because they’re totally unaffordable,’ he said. ‘Taxpayers shouldn’t be picking up the tab for lucrative pensions at a time when we’re trying to reduce a £90 billion deficit. Every single penny of taxpayers’ money spent on the NHS needs to go into front-line services and patient care, not lining the pockets of retirees.Clearly the NHS needs to wake up and smell the coffee.’

Liz Emerson, co-founder of the Intergenerational Foundation think-tank, said the new Tory Government needs to cap ‘unsustainable’ pensions. She said the increase in six-figure sums ‘dispels the myth that we are all in it together’. ‘The current public sector pension liability is almost £1.7 trillion in the red,’ she said. ‘Young private sector workers, overburdened by student debt, high rents and poor pay, may well start to question why they should have to shoulder the burden of these over-generous fat-cat pensions.’

Labour shadow health minister Jamie Reed said a probe is needed ‘to ensure fairness from bottom to top in the NHS’. A Department of Health spokesperson said: ‘It is vital that every penny of taxpayers’ money is spent to achieve the best outcomes for patients. The Government has already made significant reforms to the NHS pension scheme to save £800m a year. This includes linking pensions to career average earnings, rather than final salary and a higher retirement age.

nhs

Now we know why NHS has been doing this (gotta pay for these fat-cat pensions some how):

DCG


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