My Ref: MRP 1/8/9
28th March 2024
Circular Num: NP/080/24
To: The Secretary All Branches & Regional Councils
Dear Colleagues,
HULL TRAINS PENSION SCHEME SECTION OF THE RAILWAYS PENSION SCHEME (RPS) – 2022 TRIENNIAL VALUATION
Please be advised that the results of the 31st December 2022 actuarial valuation of the Hull Trains section of the RPS reveals a surplus of £2.96m with a funding level of 128.6%. I can also advise that the Joint Contribution Rate is set to reduce for members from 10.12% to 6.80% and for the employer from 15.18% to 10.20%.
However, while these valuation results are good news it is with regret that I must advice you that Hull Trains management and parent company First Group have made the proposal to close the Hull Trains Pension Scheme to new entrants despite this section of the RPS being in a healthy position. Management unnecessary and unacceptable proposal has been made despite our representatives’ objections.
While this union has reiterated to management that we are prepared to discuss their proposal, despite our reservations, it is with regret that on 22ndMarch 2024 without any proper notice or proper consultation management informed us that they would be closing the Hull Trains Pension Scheme to new entrants from 1st April 2024. This proposal has only been made after just one face to face meeting with our representatives.
Management’s irresponsible action has left us with no other option but to ballot our members for industrial action, something our members at Hull Trains are becoming a custom to as this is not the first time their pension scheme has been under attack.
In 2020 management made a proposal to close the Hull Trains section to future accrual (service) and throw all our members into an inferior pension arrangement. Again, parent company First Group were behind this proposal and while our members took the necessary action to defend their future pension rights and force the employer to back away from their proposal, management are back to try and make our members poorer in retirement at the expense of shareholder profits.
Management is claiming that existing members will be unaffected by their proposal, but it is a fact that closing Defined Benefits (DB) pension schemes to new entrants is the beginning of the end. This is based on history where DB schemes close their doors to new entrants is followed by funding problems and as a result employers must find money to plug deficits.
Hull Trains are stating that they will make additional contributions into the pension scheme going forward to protect the scheme, but we believe that this is unsustainable. However, the reality is management have made it clear in the past of the desire to close the Hull Trains Pension Scheme completely, so we believe that their promise to fund the scheme is nothing more than a distraction to close the scheme in the long term.
While we have written to the RPS Trustees asking them not to complete the valuation until there is an agreement between all parties involved, we have no choice but to take action against the employer.
We are currently carrying the necessary work in respect of balloting our members, and while we would be more than prepared to meet with management to discuss the matter this must be based on meaningful consultations. Therefore, management must remove there proposal to close the Hull Trains section of the RPS on 1st April 2024.
I will keep you informed of any developments.
Yours sincerely
Michael Lynch
General Secretary