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The partnership review of ill health retirement, injury benefit and sickness absence in the NHS

The partnership review of ill health retirement, injury benefit and sickness absence in the NHS. Why the need to review?. Cost sharing arrangements dictate who will contribute more if any rising costs to the NHS Pension Scheme Need to mitigate the risk of future rising costs to the Scheme

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The partnership review of ill health retirement, injury benefit and sickness absence in the NHS

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  1. The partnership review of ill health retirement, injury benefit and sickness absence in the NHS

  2. Why the need to review? • Cost sharing arrangements dictate who will contribute more if any rising costs to the NHS Pension Scheme • Need to mitigate the risk of future rising costs to the Scheme • Equality issues over current benefits • No incentives to avoid ill health retirement • Support to sick and disabled staff needs to improve to address this risk to the scheme.

  3. Aims of the review • To undertake a partnership review of: • existing arrangements in NHS for prevention and management of sickness absence • provision of ill health retirement benefits and NHS injury benefits scheme arrangements

  4. Conclusions of the review partners Managing absences • Consistently applied policies • Maintain contact • Early interventions • Integrated HR and OH services • Phased return • Reasonable adjustments • Redeployment

  5. Conclusions of the review partners Ill health retirement • Providing appropriate support for staff • Sustainability of the NHS Pension Scheme • Incentives need to be aligned • Benefits should be based on need

  6. Proposals by the review partners • Underpinning arrangements • Managing sickness absence • Ill health retirement benefits

  7. Underpinning arrangements Collective agreement on absence management • Legal responsibilities of employers towards staff • Key employer behaviours in the management of absences • Key employee behaviours in the management of absences • Outline a framework for the management of absences

  8. Underpinning arrangements Creating the right financial incentives Three options to consider: • mutual approach • differential rates • capital charge

  9. Managing sickness absence • Extension of sick pay • Improving rehabilitation arrangements for staff • Management information • Focusing the process on the individual • Line manager roles

  10. Introduction of tiered arrangements for IHR benefits member is suffering from physical or mental infirmity that make him permanently incapable of efficiently discharging the duties of that employment Tier 1 Applicant assessed as being unable to do own job. Tier 2 Applicant assessed as being unable to do any regular employment. member is suffering from mental or physical infirmity that makes him permanently incapable of engaging in regular employment

  11. Ill health retirement benefit structure Tier 1 Applicant assessed as being unable to do own job. Accrued service with no actuarial reduction Tier 2 Applicant assessed as being unable to do any regular employment. In addition to the tier 1 award members will receive an enhancement of 2/3 prospective service to NPA

  12. Movement between tiers (1) movement from tier 1 to tier 2: • deferring a decision on entitlement to a tier 2 pension through a review process

  13. Movement Between Tiers (2) movement from tier 2 to tier 1: • returning to substantive employment outside of the NHS • returning to substantive employment within the NHS.

  14. Other key elements • Rules governing abatement • Criteria for reviewing entitlements • Terminal illness • Death in service • Treatment of deferred members • Transition to new scheme arrangements

  15. Consultation on the proposals Running from 22 October to 21 January 2008 The consultation will be supported by two stakeholder events: 30 November 2007 (London) and 10 December 2007 (Leeds) Full details of the events and how to respond to the consultation are available from: www.nhsemployers.org/illhealthreview

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