§ Mr. Adleyasked the Secretary of State for Social Services how much he estimates early retirement due to the reorganisation of the Health Service will cost. his Department; and if he will take steps to prevent voluntarily 273W retiring officials paid in excess of £10,000 per annum from obtaining further paid employment in the Health Service after receipt of their early retirement payment.
§ Dr. VaughanUnder a new scheme, willing officers aged 50 or over, in categories where management numbers are to be reduced, may be recommended for early retirement, with the approval of the regional health authority which must satisfy itself that the retirement will contribute to the avoidance of redundancy. Any possibility of suitable alternative employment should therefore be explored before the retirement is approved. In the circumstances I would not expect the issue of reemployment to arise, save exceptionally on an ad hoc or casual basis.
The financial terms for those retiring under this scheme are the same as for redundant officers aged 50 or over, and the normal restriction on immediate re-employment of redundant staff and arrangements for abatement of pension on re-employment apply.
It is too soon to say how much use NHS authorities will need to make of the early retirement scheme as NHS reorganisation progresses. But it is tentatively estimated that in 1982–83 the cost additional to normal superannuation entitlements may be of the order of £2 million. In addition redundancy payments are expected of the order of £2 million, of which about one third would be reimbursed from the redundancy fund. These transitional costs of restructuring should pave the way for substantial and continuing savings in expenditure on NHS management.