Freightliner Section of the Railways Pension Scheme – 2013 Actuarial Valuation

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My Ref: MRP 1/8/43                                   28th November 2014
 
                                            Circular Num: NP/256/14
To: The Secretary All Branches & Regional Councils

Dear Colleagues,

Freightliner Section of the Railways Pension Scheme – 2013 Actuarial Valuation

Following the 2013 triennial actuarial valuation of the Freightliner shared cost section of the Railways Pension Scheme the results reveal deficit of £11.8 million with a funding level of 96.1%.

After receiving actuarial advice management have made the following proposal to mitigate the shortfall in the fund:

•    10 year recovery plan

•    The Joint Contribution Rate to increase as follows-

    Category One Members (CNERF) – from 10.86% to 11.74%

    Category Two Members (Schedule 8) – from 11.66% to 12.54%

•    No Benefit Changes

The General Grades Committee in consideration of this proposal on 27th November 2014 made the following report:

“We note that the employer is proposing to increase the joint contribution rate in line with actuarial advice. This will see contributions for both categories of members increase by 0.88% as follows:

•    Category One Members (CNERF) – from 10.86% to 11.74%

•    Category Two Members (Schedule 8) – from 11.66% to 12.54%

It is noted that following discussions with management our representatives are recommending acceptance of the proposal.

We therefore instruct the General Secretary to inform the company of our acceptance.

Branches and Regional Councils to be informed.”

I will keep you informed of any developments.

Yours sincerely,

 

Mick Cash
General Secretary