The NHS employs 1.3 million people

The government and Trades Union Congress reached a framework deal for public sector pensions last week.

It meant new employees could have to work until 65 for a full pension, but current workers' rights were protected.

But details on how it should be applied to the NHS still have to be thrashed out after talks were put on hold while the framework deal was brokered.

The health service is the third largest employer in the world with 1.3 million people in England and Wales employed by the NHS.

One major change is that people are living longer, healthier lives and are working longer Steve Barnett, of NHS Employers

Like the rest of the economy, the NHS is facing a rising pensions bill as people live longer.

In 2003, �23bn - half the NHS budget - went on pensions.

NHS Employers, part of the NHS Confederation, which represents health service managers, and trade unions have been in talks since 2003 to hammer out a pension deal.

The negotiations were put on hold over the summer as the government tried to broker a deal, but will now restart following last week's announcement.

Talks

The talks will cover a range of details, including how pensions should be calculated and what degree of flexibility for early retirement should be allowed.

NHS Employers director Steve Barnett said: "The new framework is a great step forward. A lot has changed since 1948 when the NHS was first set up.

"One major change is that people are living longer, healthier lives and are working longer.

"NHS Employers is pleased the new framework has recognised this and has reflected it in the principles for new entrants."

Eddie Saville, from the Society for Chiropodists and Podiatrists, who is representing workers in the talks, added he was delighted last week's deal protected the rights of current members.

He added: "We believe further improvements for existing scheme members can be realised and look forward to resuming negotiations and on the development of a new scheme for new entrants to the NHS."