Calmac Pension Fund 2015 Valuation Proposals

My Ref: MRP 6/4                                                                                                                                                                                                                                           1st March 2017

                                                                                                                                                                                                                                                                        Circular Num: NP/032 /17

To: The Secretary All Branches & Regional Councils

Dear Colleague,
 
CALMAC PENSION FUND 2015 VALUATION PROPOSALS
 
Further to the Circular NP/081/15 1st May 2015, as I reported previously as a result of the deficit in the Calmac Pension Fund management had made a number of proposals to mitigate this shortfall. The proposals included increasing the normal retirement age, moving from a Final Salary Scheme to a CARE arrangement and changing the way in which pensions in payment are increased, i.e. RPI to CPI.
 
I am pleased to inform you that the RMT are advised that the Calmac Pension Fund Trustee Board have submitted to The Pensions Regulator their 2015 Actuarial Valuation proposals to mitigate the shortfall in the scheme which does not include any of the detrimental management proposals mentioned above. This must be seem as a clear victory for our members at this stage,  following their actions last year and in the face of adversity and certain criticism, it shows that if our members are prepared to fight and the union continues to be pro active, we can achieve results.
 
The full details of the proposal’s are yet to be confirmed, the Chairman of the Trustee Board has stated that the employer has agreed to increase their contributions and deficit correction annual lump sum payments into the fund. As a result there will be no changes to members’ benefits and contributions.
 
While the results of the next Actuarial Triennial Valuation of the fund in 2018 may see the funding level increasing or indeed worsening the decision not to change members benefits is clearly good news. We must remain vigilant and be prepared to fight any attempts to make changes which may result in any detriment to our members.
 
The National Executive Committee noted and adopted the following report on 23rd February 2017:
 
“We note that the Chairman of the Calmac Pension Fund Trustee Board has informed the RMT that a proposal has been made to The Pensions Regulator in respect of the 2015 Actuarial Valuation.
 
The proposal which has been made is to increase the employer’s future service and deficit correction payments. This will mitigate the need to worsen member benefits or increase their contributions as first proposed by management.
 
While there will be another Triennial Actuarial Valuation in 2018 this is good news not only for active members of the fund but also pensioners.

We instruct the General Secretary to prepare an article for the Seafarer Magazine and the RMT News in respect of this issue.”
 
I will keep you advised of all further developments.

Yours sincerely,

 

Mick Cash
General Secretary