Great Western Railways Auto-Enrolment Proposals

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My Ref: MRP 1/8/42                                                                                                                                                                                                                                       1st August 2016

                                                                                                                                                                                                                                                                        Circular Num: NP/193/16
To: The Secretary All Branches & Regional Councils

Dear Colleagues,

GREAT WESTERN RAILWAYS AUTO ENROLMENT ARRANGEMENTS

The RMT have been advised by management that they intend to Auto-Enrol those employees who have already taken their Railways Pension Scheme (RPS) benefits, but continue to work, into a Defined Contribution (DC) arrangement. Management also propose to Auto-Enrol employees on part-time hours or are seasonally employed, into a DC arrangement.

Under legislation all employees who earn over £10k per annum and are aged between 22 and State Pension Age have to be Auto-Enrolled into a qualifying pension scheme. In the case of Great Western Railways all qualifying employees are automatically enrolled in the RPS.

While new employees working for Great Western Railways will still be Auto-Enrolled into the RPS the employer is intending to exclude membership of the RPS to the employees mentioned above.

Management believe in the case of those employees still working but already drawing their RPS benefits, that they have no obligation to re-enrol them into the RPS. Instead these employees will be Auto-Enrol into a qualifying DC pension scheme.

In the case of those workers on part-time hours or seasonally employed management believe that these employees would receive a greater pension if they were Auto-Enrolled into a DC arrangement.

The National Executive Committee on 28th July 2016 noted and adopted the following report:

“We note the proposals on file in respect of excluding certain employees from membership of the Railways Pension Scheme.

In line with union policy that all workers should have the right to join a Defined Benefit pension scheme, we instruct the General Secretary to inform the employer that we reject their proposals.”

In line with this decision I have written to management outlining this union’s opposition to these proposals and I will keep you informed of developments.

Yours sincerely,

 

Mick Cash
General Secretary