South West Trains Section of the Railways Pension Scheme – 2013 Actuarial Valuation

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My Ref: MRP 1/8/24                                   28th November 2014
 
                                            Circular Num: NP/254/14
To: The Secretary All Branches & Regional Councils

Dear Colleagues,

South West Trains Section of the Railways Pension Scheme – 2013 Actuarial Valuation

Following the 2013 triennial actuarial valuation of the South West Trains shared cost section of the Railways Pension Scheme the results reveal, allowing for future service contributions, a surplus of £8.4 million with a funding level of 101.3%.

As a consequence of the surplus in the fund management had initially proposed to defer increasing contributions, which were due to rise in line with the 2010 valuation schedule of contributions, for three years.

However, following discussions with the Department of Transport, and subsequently the South West Trains Pensions Joint Working Group, the following has been proposed:

•    The Joint Contribution Rate to increase from 1st July 2015 until 30th June 2027 as follows-

o    Member 10.96% to 11.12% (+0.16%) / Employer 16.44% to 16.68% (+0.24%)

•    No Benefit Changes

The General Grades Committee in consideration of this proposal on 26th November 2014 made the following report:

“We note the letter from the company outlining the revised proposal to increase the Joint Contribution rate from 2015.

We further note that our pension representatives are recommending acceptance of the proposal.   

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

Branches and Regional Councils to be informed.”

I will keep you informed of any developments.

Yours sincerely,

 

Mick Cash
General Secretary