EAST MIDLANDS PENSION SCHEME SECTION OF THE RAILWAYS PENSION SCHEME (RPS) – 2022 TRIENNIAL VALUATION

My Ref: MRP 1/8/21                                                                         

 

12th January 2024

 

Circular Num: NP/009/23

 

To: The Secretary All Branches & Regional Councils

 

Dear Colleagues,

 

EAST MIDLANDS PENSION SCHEME SECTION OF THE RAILWAYS PENSION SCHEME (RPS) – 2022 TRIENNIAL VALUATION

 

Please be advised that the results of the East Midlands section of the RPS, 31st December 2022 Actuarial Valuation reveal a surplus of £76.4m, with a funding level of 118.3%.  In line with actuarial advice, it is proposed that the Joint Contribution Rate will increase from 1st July 2024 as follows:

 

Category 60

Category 60

Member from 7.48% to 8.08%

Employer from 11.22% to 12.12%

Category 62

Category 62

Member from 6.56% to 7.08%

Employer from 9.84% to 10.62%

 

Please note that while contribution rates will vary section upon section, the increase in contribution above is due to cost of future service (accrual) increasing.

 

There are no benefit changes being proposed.

 

Our East Midlands Railways representatives have considered the proposal and while they are not opposed to the increase in contributions, they believe members need to be made aware that the contribution increase is being driven by the results of the valuation and not dictated by management.

 

In consideration the National Executive Committee on 11th January 2023 adopted the following report:

 

“We note the 2022 valuation results of the East Midlands section of the RPS which reveal a surplus. 

 

For the avoidance of doubt, it is noted that the Joint Contribution Rate is set to increase in line with the scheme actuary’s assumptions and recommendation.

 

It is noted that while our representatives are supporting the proposal to increase contributions, they are concerned that the employer will not carryout meaningful consultation in respect of explaining why contributions are increasing. Therefore, our representatives are requesting that the RMT writes to its members explaining the situation and encouraging them to participate in the statutory 60-day consultation period if they have concerns with the valuation proposal.

 

In light of the above the General Secretary is instructed to inform the company of our acceptance and write to members accordingly.

 

Regional Councils and Branches to be advised.”

 

In accordance of the NEC decision I will shortly write to our members at East Midlands Railways.

 

I will keep you informed of any developments.

 

Yours sincerely

 

Shape

Description automatically generated with medium confidence

 

Michael Lynch

General Secretary