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

My Ref: MRP 1/8/42                                                                          

 

2^nd April 2024

 

Circular Num: NP/082/24

 

To: The Secretary All Branches & Regional Councils

 

Dear Colleagues,

 

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

 

Please be advised that 31st December 2022 Actuarial Valuation results of the Freightliner section of the RPS, reveal a surplus of £106.5m with a funding level of 125.4%. This compares with the 31^stDecember 2019 valuation results which revealed a deficit of £48.8m with a funding level of 90.5%.

 

We are advised that the main reason for the significant improvement in the funding position is due to the assumed investment returns between valuations outperforming their objectives and the assumptions being used by the scheme actuary.

 

Following discussions on the Freightliner Pension Forum our representatives report that it was proposed that:

 

• Deficit correction contributions for both members and the company are no longer required due to the improved funding position of this RPS Section

 

• That the Future Service Contribution Rate would reduce from 1^st April 2024 rather than 1^st July 2024 by between 47% to 48% as follows.

 

   *Normal Retirement Age (NRA)

 

• The surplus will be retained as a buffer for future valuations, should the funding position worsen between valuations

 

• That there will be no changes made to members benefits 

                                                                                                                                      

I can advise that following our representatives’ recommendation that the above proposal is accepted, I can advise that the NEC have endorsed the valuation proposal.

 

I will keep you informed of any developments.

 

Yours sincerely

 

 

 

Michael Lynch

General Secretary