Pension Arrangements - Jarvis Update

9th May 2011
Circular No.NP/085/11</br>

Dear Colleague,

PENSION ARRANGEMENTS – JARVIS UPDATE

I write to update you on the position of former Jarvis employees’ pension arrangements since this section of the Railways Pension Scheme was placed into the Pension Protection Fund (PPF) in 2010.

As already reported once a pension scheme enters the PPF members accrued benefits are reduced in line with its rules. The RMT has consistently voiced that this is unfair and that the Government should honour the promises which were made prior to the privatisation and assure all ex-Jarvis workers that they will receive their total pension entitlements.

While it may be argued that the PPF offers at least some protection to employees’ pension benefits, in the event of a sponsoring employer going into administration, clearly in the case of Jarvis anything less than 100% is an injustice. Unfortunately the legal advice obtained informed us that any challenge through the courts was unlikely to be successful. While the Railway Act 1993 and the 1994 Order promised security for ‘protected members’ these safeguards seemingly do not apply to the Jarvis section of the RPS entering the PPF.

I have also written to Steve Webb MP at the Department of Works and Pensions on two occasions raising the above concerns. I am still awaiting a considered response.

The position at present in respect to the ‘day to day’ running of the Jarvis pension section is that RPMI continue to carry out many of administrative tasks, although it is expected the PPF will take over the complete running of the scheme sometime later this year or in 2012.

I would like to assure all members directly affected by this outrage that the RMT will continue to fight for justice, whether that be through the RMT Parliamentary Group, the courts or any other appropriate channel.

I shall keep you informed of further developments.

Yours sincerely,

B. Crow
General Secretary