New Cross Country Section of the Railways Pension Scheme – 2013 Actuarial Valuation

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My Ref: MRP 1/8/18                                   19th December 2014
 
                                            Circular Num: NP/275/14
To: The Secretary All Branches & Regional Councils

Dear Colleagues,

New Cross Country Section of the Railways Pension Scheme – 2013 Actuarial Valuation

Following the 2013 triennial actuarial valuation of the New Cross Country shared cost section of the Railways Pension Scheme (RPS) the draft results reveal a deficit of £15.0 million with a funding level of 94.5%. As a result of the shortfall corrective action is required.

The employer’s original proposal was to maintain the Joint Contribution Rate (JCR) at the same level until 2029. This would result in the JCR remaining at 26.4% instead of increasing to 27.0% in July 2015 as outlined in the schedule of contributions.

However, the RPS Trustee asked that the employer reconsiders this proposal as they are unhappy that the deficit correction payments would be reduced.

Following discussions with RMT representatives the following amended proposal has been made by the employer:

•    11 Year Recovery Period

•    Joint Contribution Rate to increase:

o    Member 10.56% to 10.80% (+0.24%) / Employer 15.84% to 16.20% (+0.36%)

•    No benefit changes

The General Grades Committee in consideration of this proposal on 18th December 2014 made the following report:

“We note the letter from the employer has proposed an increase in the present levels of contributions and a recovery period of 11 years 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