My Ref: MRP 1/8/3
3rd December 2020
Circular Num: NP/299/20
To: The Secretary All Branches & Regional Councils
NETWORK RAIL CARE PENSION SCHEME - 2019 ACTUARIAL VALUATION
Following the 2019 Actuarial Valuation of the Network Rail CARE Pension Scheme, the draft results reveal a surplus of £10.7m with a funding level of 104%. While the scheme remains well funded the surplus has reduced from £25.0m to £10.7m between valuations which is partly due to the Joint Contribution Rate (JCR) being set lower by the trustee following the conclusion of the 2016 valuation.
As a result management have advised that inline with the schedule of contributions agreed in 2017, as part of the 2016 valuation, the JCR was set to increase from 14.8% to 18.4% from 31st December 2020, however, following discussions between the employer and the trustees it is proposed the JCR will now increase from 14.8% to 18.1% from 31st March 2021. This would see member contributions increase from 5.92% to 7.24% (+1.32%) from 1st April 2021. There are no proposed benefit changes.
In consideration your National Executive Committee on 3rd December 2020 noted and adopted the following report:
“We note the valuation results on file and in line with the schedule of contributions agreed as part of the 2016 actuarial valuation the joint contribution rate will increase as follows from 1st April 2021:
· Member: 5.92% to 7.24%
· Employer: 8.88% to 10.86%
We also not the current contributions rates have been under the required joint contribution rates since the previous valuation and the proposed rates revert to the required schedule of contributions.
In light of the results and recognising that the joint contribution rate was expected to increase we instruct the General Secretary to inform the employer of our acceptance.
Branches and Regional Councils to be advised.”
I will keep you advised of any further developments.
My Ref: MRP 1/8/3