Hull Trains Section of the Railways Pension Scheme 2019 Actuarial Valuation Proposals

My Ref: MRP 1/8/9

30th March 2021

Circular Num: NP/099/2021

To: The Secretary All Branches & Regional Councils

Dear Colleagues,

HULL TRAINS SECTION OF THE RAILWAYS PENSION SCHEME 2019 ACTUARIAL VALUATION PROPOSALS

Please be advised that this union have been advised by management that they intend to close the Hull Trains section for the Railways Pension Scheme (RPS) from 25th April 2021 and offer employees an inferior Defined Contribution arrangement.

Management’s proposal has been made despite the 2019 draft valuation results revealing that on a Technical Provisions basis the section is 98.9% funded, and indeed allowing for future contributions there is in fact a small surplus. Clearly based on these actuarial results this scheme is far from being in a place where you would be looking at changing benefits let alone ceasing future accrual.

The RMT have made it clear to management that we are totally opposed to this proposal which we believe is nothing more than a cynical attempt to take advantage of the current health crisis to close a well-funded final salary pension scheme which will ultimately result in making our members poorer in retirement.

In consideration your National Executive Committee on 25th March 2021 noted and adopted the following report:

“We note that following a further meeting and formal clarification management have refused to withdraw their proposal to close the Hull Trains section of the RPS for future accrual from 25th April 2021.

In light of this decision, we instruct the General Secretary to:

1. Inform the company of our objections to this proposal
2. Commence a ballot matrix
3. Arrange a remote meeting with our Hull Trains members and officers in attendance
4. Write to all members explaining the impact of the proposal and also to seek clarification from them whether they have Indefeasible Rights

All Branches and Regional Councils to be advised.”

I can advise that I have written to management informing them of this unions position, and I can further advice that we will be meeting with our members on 8th April 2021 to discuss this matter.
I will keep you advised of any developments.

Yours sincerely,

Mick Cash
General Secretary