Important notice re your Pension – PLEASE ACT NOW

21st December 2018  To: All Freightliner RMT Members

Dear Colleague Important notice re your Pension – PLEASE ACT NOW As you know Freightliner has put forward proposals to your union that could threaten your pension. This is a profitable company which is growing, for example they have just won a multi-million deal with Mendip Rail.   And even though Freightliner have a well-funded pension scheme they now want to force members for the first 5 years of their company service away from a Final Salary Pension scheme into an inferior Defined Contribution (Money Purchase) pension scheme. This will significantly reduce their retirement aspirations.

You have already made sacrifices such as CPI for past service. These latest proposals will mean new members are restricted from joining for the first 5 years of their employment this will put a strain on the fund. As current employees retire or leave the business this will mean there are less members of the Freightliner section contributing.

If there are fewer members contributing then this will reduce the amount of money going into the scheme.  It will be the members of the scheme who will have to pick up any shortfall and this will threaten pension benefits.

Your union is balloting you and you colleagues in defence of your pension and you will receive more information on the ballot timetable in New Year. When you get your ballot paper vote YES to prevent management imposing their changes. The pressure that you and your union are exerting is already having an effect on the company. They have now said they are “willing to give this matter further consideration before making a final decision.” They have also advised that they will be consulting employees and I would urge you to respond to this consultation by sending in the below proforma response. Let’s keep up the pressure. There will be a joint union meeting early in the New Year so we can continue to coordinate our response but, in the meantime, please respond to the consultation.  Defend your future. Defend your Pension. Yours sincerely   Mick Cash      General Secretary   ---------------------------------------------------------------------------------------------------------------- Chris Hannon, Pensions Director, G&W UK Europe Region,  3rd Floor, 90 Whitfield Street  Fitzrovia, London W1T 4EZ

Dear Mr Hannon

FREIGHTLINER SECTION OF THE RAILWAYS PENSION SCHEME (RPS) – ELIGIBILITY TO JOIN

I am writing to you to object to your proposals for the scheme.

This is a well-funded pension scheme and an inferior Defined Contribution (Money Purchase) pension scheme will significantly reduce their retirement aspirations.

If new members are restricted from joining for the first 5 years of their employment this will put a strain on the fund. As current employees retire or leave the business this will mean there are less members of the Freightliner section contributing.

If there are fewer members contributing then this will reduce the amount of money going into the scheme.  It will be the members of the scheme who will pick up any shortfall and in doing so threaten pension benefits.

Please do not proceed with these proposals and instead reach an agreement with my union the RMT.

Your sincerely

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