My Ref: MRP 1/8/8 25th May 2018
Circular Num: NP/097/18
To: The Secretary All Branches & Regional Councils
Abellio Scotrail Section of the Railways Pension Scheme (RPS) –
2016 Triennial Actuarial Valuation
As you will be aware every three years the Trustees of the RPS have to carry out actuarial valuation of each of the 100 plus sections in the RPS to ensure that the assets in each of these sections meet all the liabilities (benefits) built up in the schemes. Where there is a deficit the Trustees are required to make arrangements to address the shortfall. If there is a surplus in the section then this can result in contributions reducing for both the employer and active members.
The Trustees have 15 months to complete the valuation process and put in place the necessary arrangements depending on whether the section is in deficit or surplus. In the case of the RPS all sections should have completed this process by 31st March 2018.
However, as you will be aware following Circulars NP/176 /17, 1st November 2018; NP/028 /18, 12th February 2018 and NP/030/18, 13th February 2018, all Train Operating Companies (TOCs) sections are yet to complete the 2016 valuation due to the ongoing discussions between the RPS Trustee and the Pensions Regulator.
As a result of this delay the Pensions Regulator has extended the deadline for the 2016 valuation to be completed until these discussions are completed.
I can advice you that as a result of this delay Abellio ScotRail management have advised the RMT that they are proposing that the current Joint Contribution Rate (JCR) of the Abellio ScotRail section of the Railways Pension Scheme will remain at its current level until the 2016 actuarial valuation of the section has been finalised by the trustee.
In accordance with the sections schedule of contributions it was expected that as from 1st July 2018 employer and member contributions would increase, however, as the valuation has not been completed the JCR will remain at its current level.
Management have advised our representatives that they are consulting with the RMT and other recognised trade unions in respect of this and will consult again on any future developments in respect of the 2016 Actuarial Valuation.
I will keep you informed of developments.