Gaps in Pensionable Pay - Silverlink Conductors

January 17, 2011
Circular No. NP/006/11

Dear Colleague,

GAPS IN PENSIONABLE PAY/SILVERLINK CONDUCTORS

I am pleased to be able to advise members that following a number of meetings between the employer and the RMT the issue of gaps in pensionable pay for Ex-Silverlink Conductors who now work for London Midland has now been resolved.

Although management have never accepted that an error had occurred in assessing pensionable pay in the past for Ex-Silverlink Conductors the following terms have been agreed:

1. The Company have decided to fund the gap created by the alleged pension error which occurred under Ex-Silverlink for existing conductors and leavers since May 2007.
2. Resolution of the alleged error has been based on the principle of restoring the status of the conductor’s pension as if the appropriate pay increases had been applied to all elements of pensionable pay.
3. As a result of correcting the alleged error no conductor should be disadvantaged. There are some conductors where there was no error made historically and thus they will not see any change as part of this process.
4. The money will be paid by the company subject to due process, individual consultation, industrial harmony on this issue and the approval of the pension trustees.

Please note that pensions for conductors who left service between May 2007 and the present time are also being progressed under the same process.

As required by pension legislation there will be a 60 day consultation period where individuals will be able to ask questions or raise concerns relating to the above process. The consultation period will begin once those members affected by this issue have received a letter from London Midland together with an amended annual pension estimate.

Regrettably management would not agree to back dating the proposal beyond May 2007, however, I believe there was significant ground made during the discussions with management and that this agreement is a fair settlement which is in line with the agreement which is already in place for driving grades.

Yours sincerely,

Bob Crow
General Secretary