Island Line Section of the Railways Pension Scheme – 2013 Actuarial Valuation

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My Ref: MRP 1/8/53                                          12th December 2014
 
                                            Circular Num: NP/266/14
To: The Secretary All Branches & Regional Councils

Dear Colleagues,

Island Line Section of the Railways Pension Scheme – 2013 Actuarial Valuation

Following the 2013 triennial actuarial valuation of the Island Line shared cost section of the Railways Pension Scheme the draft results reveal, allowing for future contributions, a deficit of £0.044 million with a funding level of 99.2%.

Under the 2010 valuation deficit recovery plan member contributions were due to reduce from 10.96% to 10.84% and the employers from 16.44% to 16.26%. However, as a result of the shortfall in the fund management made the following proposal:

•    8 Year Recovery Period

•    Joint Contribution Rate to remain at its current level:

o    Member 10.96% / Employer 16.44%

•    Employer to continue to make lump sum deficit correction payments of £37,450 per annum until 2017

•    No benefit changes

The General Grades Committee in consideration of this proposal noted and adopted the following report on 9th December 2014:

“We note that the employer has proposed to maintain the present level of contributions and continue with the present recovery period in line with actuarial advice.

We further note that our representatives are recommending acceptance of the company’s proposal.

Therefore we instruct the General Secretary to inform the company of our acceptance of their proposals.”

I will keep you informed of any developments.

Yours sincerely,

 

Mick Cash
General Secretary