My Ref: MRP 1/8/1
6th June 2024
Circular No: NP/143/24
To: The Secretary All Branches & Regional Councils
Dear Colleagues,
HITACHI RAIL EUROPE SECTION OF THE RAILWAYS PENSION SCHEME (RPS) – 2022 TRIENNIAL VALUATION
Please be advised that the results of 31st December 2022 Actuarial Valuation of the Hitachi Rail Europe section of the RPS reveal a surplus of £6.422m with a funding level of 116.5%.
I would remind you that as part of the East Coast Main Line (ECML) to Hitachi Rail Europe TUPE transfer in 2018 those employees transferred had their contributions capped at the contribution rate applicable at the time to the ECML section of the RPS. As agreed with the RMT these capped contributions would remain in place until 30thJune 2024 and depending on the results of 31st December 2022 valuation these contributions could go up or down.
I am pleased to advise that member contributions are set to either remain unchanged or reduce because of cost of providing future service benefits reducing. While Category 64 members were due to see an increase in contributions of 0.04%, the employer with the agreement of the RPS trustees has proposed that these members contributions remain at 8.40%.
I can also advice that as a part of the Hitachi Rail Europe’s long-term objective to take less investment risk within this section, the employer has agreed to continue to pay more than its 60% share of the Joint Contribution Rate which will assist in mitigating any increases to our members contributions going forward despite the employers’ contributions reducing.
In line with actuarial advice member and employer contributions from 1st July 2024 will be as follows:
Category 60 Members from 10.02% to 9.72% Employer from 29.00% to 18.38% |
Category 62 Members From 9.10% to 8.88% Employer from 27.72% to 17.12% |
Category 64 Members contributions will remain at 8.40%* Employer from 26.62% to 16.50% |
In consideration I can advise that the NEC has considered the proposal above and have informed management of its acceptance.
I will keep you informed of any developments.
Yours sincerely
Michael Lynch
General Secretary