Network Rail – Contracting-Out Proposals – Fixed Additional Contributions/Protected Persons

 My Ref: MRP 1/8/3                                            1st August 2016

                                             Circular Num: NP/194/16
To: The Secretary All Branches & Regional Councils

Dear Colleagues,

Network Rail – Contracting-Out Proposals – Fixed Additional Contributions/Protected Persons

Please be advised that management have informed the RMT that the Fixed Additional Contributions which are used to reduce Network Rails pension contributions so that they are able to recoup some of their National Insurance Contribution rebate will not apply to those Railways Pension Scheme (RPS) members who have protected status.

As you will be aware as part of Network Rail Ending of Contacting-Out proposals, so that the employer can recoup some of their National Insurance Contribution rebate members of the Network Rail section of RPS pay an additional Fixed Additional Contribution.

Management have decided that due to legislative protection some employees have the Fixed Additional Contribution will not apply to protected persons. This will result in protected members’ contribution reducing as follows:

o    RPS 60 protected member contribution rate 9.36% to 8.80% *(-0.56%)

o    RPS 65 member contribution rate 7.00% to 6.52% *(-0.48%)

*The employer’s contribution rate will increase in line with these reductions so that the funding of the scheme is not adversely affected.

Please note that those protected members who elected to pay the Extra Contributions Option will see their pension contribution reduce by the same amount as illustrated above.

 I will keep you informed of any developments.

Yours sincerely,

 

Mick Cash
General Secretary