Railways Pension Scheme Triennal Actuarial Valuation Results – 31st December 2013

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My Ref: MRP 1/8/1                                 20th December 2013
                                          Circular Num: NP/367/13

To: The Secretary All Branches & Regional Councils

Dear Colleagues,

Railways Pension Scheme Triennal Actuarial Valuation Results – 31st December 2013

I refer to the previous Circular NP/299/13, 30th October 2013, as you recall the Railways Pension Scheme (RPS) is due to be actuarially valued on 31st December  2013. The purpose of the valuation is to see whether there are enough assets in each of the RPS sections to meet the past and future pension liabilities. If there are deficits in any of the RPS sections then corrective action may be required.

As I reported previously in relation to RPS TOC sections meeting have been taking place through the Informal Pensions Working Group (IPWG) to look at possible ways to mitigate any possible shortfalls in these sections. Possible solutions were those used in relation to the deficit in the Network Rails section of the RPS following the 2010 actuarial valuation results.

Following a further meeting of the IPWG and a resolution from the Birmingham Rail Branch, expressing concern at possible proposals contained in my previous circular, the General Grades Committee adopted the following report from the General Grades Committee Pensions Industry Wide Sub Committee on 12th December 2013:

“That we note the resolution from the Birmingham Rail Branch and note that the Actuarial report of 31st December 2013 will be outlined in the spring of 2014. However, we make it clear that our policy is for a final salary scheme and not a career average.

The General Secretary went to an Informal Pension Working Group meeting where the representatives from Train Operating Companies (TOCs) believed there would have to be no change to Railway Pension Scheme benefits or payment schedule.

We instruct the General Secretary that once these actuarial figures have been released they should be placed in front of the General Grades Committee.

All Branches and Regional Councils to be advised.”

The indicative valuation results for all RPS sections are due at the end of February 2014. I would therefore request that RMT representatives forward these reports on to Head Office once they are available so they can be considered by the General Grades Committee.

I will keep you informed of developments.

Yours sincerely,
R. Crow
General Secretary