Telent Technology Services Limited (Omnibus) Section of the Railways Pension Scheme

My Ref: MRP 1/8/112                                   28th November 2014
 
                                            Circular Num: NP/255/14
To: The Secretary All Branches & Regional Councils

Dear Colleagues,

Telent Technology Services Limited (Omnibus) Section of the Railways Pension Scheme

Following the 2013 triennial actuarial valuation of the Telent Technology Services (Omnibus) shared cost section of the Railways Pension Scheme the draft results reveal, allowing for future contributions, a deficit of £5.4 million with a funding level of 95.5%

The Omnibus multi employer section proportions any deficit amongst participating employers. Telent Technology Services share of the shortfall has therefore increased from £372,380 in 2010 to £447,168 in 2013 (+ £74,788).

The scheme actuary has indicated that to mitigate the deficit the Joint Contribution Rate would need to increase as follows:

•    Member 13.40% to 17.36% (+3.96%) / Employer 20.1% to 26.0% (+5.9%)

Clearly such an increase would be unaffordable for the many members. However, as a result of discussions between RMT representatives and management a revised proposal has been made:
•    12 year recovery period

•    Contribution rates to remain at:

o    Member 13.40  / Employer 20.1%

•    The employer to increase their annual lump sum payments from £18,700 to £57,000 during the recovery period

•    No benefit changes

The General Grades Committee in consideration of this proposal on 27th November 2014 made the following report:

“We note that management are proposing to continue to make lump sum deficit correction payments into the fund and therefore member contributions will remain at the same rate.

We further note that our representatives are recommending acceptance of the proposal.

Therefore we instruct the General Secretary to inform the company of our acceptance.

Branches and Regional Councils to be informed.”


I will keep you informed of any developments.

Yours sincerely,

 

Mick Cash
General Secretary