Knorr-Bremse / Railcare Section of the Railways Pension Scheme
Login and add to My RMT
My Ref: MRP 1/8/11
1st November 2013
Circular Num: NP/302 /13
To: The Secretary All Branches & Regional Councils
KNORR-BREMSE / RAILCARE SECTION OF THE RAILWAYS PENSION SCHEME
As a result of the administration of Railcare Limited in July 2013 the Railcare Pension Scheme section of the Railways Pension Scheme (RPS) was placed in the assessment period of the Pension Protection Fund (PPF). The purpose of the assessment period is to ascertain whether the scheme has enough assets to meet its past liabilities. In the event there is a shortfall, the scheme could be placed into the PPF and as a result member benefits could be reduced in line with the PPF compensation rules.
Despite Knorr-Bremse acquisition of the Railcare business, the Railcare Pension Scheme is still in the PPF assessment period. Concerns have been raised by RMT representatives at the Wolverton site in relation to the new employer’s pension obligation, in particular the terms of the Railways Act 1993 in relation to pension rights for those employees with Protected Status.
The RMT’s position is that Knorr-Bremse should set up a section of the RPS so that employees can continue to contribute into the RPS. We also believe that members should be given the option of transferring their past service benefits built up in the Railcare Pension Scheme into the Knorr-Bremse section of the RPS.
However, the Railcare Pension Scheme continues to be in the assessment period of the PPF and members will shortly receive a letter from the Chairman of RPS Trustees in relation to these accrued benefits.
The RMT will continue to monitor the situation and will keep members informed of developments.