On the go: The government has relaxed its pension rules in the coronavirus bill for National Health Service staff returning to work so they are not hit by reduced pension payments.
The coronavirus bill, which includes temporary, emergency legislation to tackle the Covid-19 pandemic, includes several measures to help returning NHS staff to receive full pension payments.
The bill has suspended several regulations in the NHS Pension Scheme, in a move to remove barriers that would prevent otherwise retired members from returning to work to help control the crisis while continuing to receive their pensions.
This is a positive measure for professionals, as the government has urged retired medical professionals to consider re-entering the workforce to help tackle the coronavirus outbreak – a call that 4,000 nurses and 500 doctors have already responded to.
Under normal circumstances, retired doctors or nurses returning to work could see their NHS pension reduced under a complex process known as “abatement”. But the government has proposed temporarily suspending these rules through its coronavirus bill.
Under the so-called “16-hour rule” members of the scheme must take a 24-hour break before returning to employment after retirement. This break can take place over a weekend meaning members could retire on Friday and return to work on Monday.
However, their pension will be suspended if the member returns to work and commits to more than 16 hours per week within the first four weeks.
The suspension of this rule would allow staff to return immediately after retirement and continue their existing working commitments, or increase them, while still receiving their full pension benefits.
The department of Health and Social Care stated: “This would remove the financial disincentive of members having their pension benefits suspended if they return immediately to a working pattern in excess of 16 hours a week following retirement.”
This article originally appeared on FTAdviser.com
