Network Rail Pension Scheme –2013 Actuarial Valuation & Ending of Contracting Out Proposals

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My Ref: MRP 1/8/3                                            18th January 2016

                                             Circular Num: NP/017/16
To: The Secretary All Branches & Regional Councils

Dear Colleagues,

Network Rail Pension Scheme –2013 Actuarial Valuation & Ending of Contracting Out Proposals

I refer to Circular NP/208/15, 22nd October 2015, following further considerations Network Rail management have decided to make an additional option available to members in respect of the pensionable pay cap.

As you will recall the original proposal was as follows:

Option A - To change the present pensionable pay cap from RPI + 0.5% to a flat rate RPI cap. Therefore any pay award above the RPI cap will be non-pensionable. This proposal will result in member contribution rates remaining at their current levels-

o    RPS 60 protected member contribution rate 9.36%
o    RPS 60 non-protected member contribution rate 9.36%
o    RPS 65 member contribution rate 7.00%

Following actuarial advice management have made the following proposal:

Option B: To change the present pensionable pay cap from RPI + 0.5% to a flat rate RPI with any element of a pay award above the new cap being pensionable for future service only. This will increase member contributions –

o    RPS 60 Protected: 9.36% to 11.14%
o    RPS 60 Non-Protected: 9.36% to 11.14%
o    RPS 65: 7.00% to 8.78%

Additionally, Network Rail employees who did not take up the option to join the RPS once they had completed five years company service will be given a one off opportunity to join the RPS65 scheme.
 
I will keep you informed of any developments.

Yours sincerely,

 

Mick Cash
General Secretary