Unipart Rail Section of the Railways Pension Scheme – 2013 Actuarial Valuation

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My Ref: MRP 1/8/19                                   23rd October 2015
 
                                            Circular Num: NP/210 /15
To: The Secretary All Branches & Regional Councils

Dear Colleagues,

Unipart Rail Section of the Railways Pension Scheme – 2013 Actuarial Valuation

I refer to Circular NP/070/15 21st April 2015, following further meetings with management and their representatives the following proposal in respect of the above was placed before the General Grades Committee:

•    Zero percent cap on future pensionable pay increases

•    Member contributions to remain fixed at 10% and the employer to take liability of any future deficit

•    Employer contribution rate of 15.4%

•    15 year recovery period

•    Employer to make additional contributions of £135k per annum between years 1 - 6 , and £230k per annum between years 7 -15

•    Members will be given the option to make additional “matching” contributions of up 15.4% into a Defined Contribution arrangement due to the zero percent cap on pensionable pay increases. This is guaranteed for a minimum of ten years

The General Grades Committee in consideration of this proposal noted and adopted the following report on 20th October 2015:

“We note that the Assistant General Secretary and the Pensions Officer had a conference call with management and the RPMI Pensions Policy Director to discuss the views of the trustees in respect of Unipart Rail’s valuation proposals

It is clear from the discussion which took place that this union needs agree or not to agree to the employer’s proposal to freeze pensionable pay. In return the scheme will remain open for pension scheme members and their contributions will not increase following future valuations.

It is further noted that the employer and their financial experts believe that the proposed Defined Contribution scheme will compensate members’ future pension benefits as a result of the pensionable pay freeze.  

In response to concerns raised by the RMT in respect of members understanding the implications of these proposals management have informed us that scheme members were offered Independent Financial Advice in the early part of 2015.

We note that the Regional Organiser for Unipart Rail has indicated that he and our local representatives are of the view that we have to reluctantly accept the proposal which will allow the trustee to review the valuation and conclude this process.  

We therefore instruct the General Secretary to inform management of our acceptance of their proposal.

Branches and Regional Councils to be informed.”

I will keep you informed of any developments.

Yours sincerely,

 

Mick Cash
General Secretary