Eurostar Section of the Railways Pension Scheme – 2016 Actuarial Valuation

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My Ref: MRP 1/8/4                                   1st February 2018
 
                                            Circular Num: NP/021/18
To: The Secretary All Branches & Regional Councils

Dear Colleagues,

Eurostar Section of the Railways Pension Scheme – 2016 Actuarial Valuation

Following the 2016 triennial actuarial valuation of the Eurostar shared cost section of the Railways Pension Scheme the draft results reveal a deficit of £7.2 million with a funding level of 98.3%.

As a result of the shortfall in the section the employer is proposing that the Joint Contribution Rate will increase in line with the schedule of contributions agreed as part of the 2013 Actuarial Valuation:

o    To 30 June 2018 (current rate)    10.56% employee        15.84% employer
o    1 July 2018 to 30 June 2027       11.28% employee        16.92% employer
o    From 1 July 2027           10.28% employee        15.42% employer

Management believe this proposal will reassure the Pension Scheme Trustee that they have an effective plan in place to address the deficit in the section whilst minimising the impact on scheme members as best they can.

The proposal has been fully consulted among our membership at the company and was debated at three EPS branch meetings. Further in line with pension consultation legislation the company has commenced the 60-day statutory consultation exercise.

In consideration the National Executive Committee on 23rd January 2018 made the following report:

“That we note the funding level of the section and subsequent shortfall and we note the proposed changes to the contribution rates which are based on the existing schedule arising from the 2013 valuation.

We further note the branch consultation process that has taken place and the unanimous acceptance of the proposals at the RMT EPS Branch meeting on 15th January 2018 and therefore we instruct the General Secretary to advise the company of our acceptance of the proposals.

Relevant Branches and Regional Councils to be advised.”

I will keep you informed of any developments.

Yours sincerely,

 

Mick Cash
General Secretary