Pension Archives - Page 2 of 3

October 23, 2016

Tube Lines Pay, Night Tube and Pensions Dispute

As you know, talks with LUL and Tube Lines have been ongoing for several years regarding the issue of Pay, Night Tube and Pensions.

All these three issues have become intertwined and we have been trying to settle each dispute and come to a complete agreement for all three issues.

The dynamics are clear as it seems likely that Night Tube will be fully running on the Piccadilly Line soon meaning that an agreement with the RMT is now essential for its full implementation. This in reality would mean a move from Monday to Friday Rosters to Sunday to Thursday in all Tube Lines affected areas. We recognise that some areas have already changed roster (such as track) and we believe that the driver behind this was indeed night tube even if this is denied. We have been clear that any settlement for Night Tube would need to see all staff having the right to be entered into the TfL Pension Scheme should they choose. We also believe that there are people that simply cannot change their shift patterns and we are seeking guarantees that these people are not adversely affected and we are looking at alternatives such as flexible working and potential transfers to LUL equivalent vacancies on LUL terms and conditions.

We believe that the self funding element of providing pensions is met not only by any potential efficiencies from issues such as new technology but also from the savings achieved from the ending of the Amey Management Contract and the money that that will release. Therefore, we do not see any impediment to agreement that will allow as early as possible entry into the TfL Fund.

The expectation is that LUL could then implement the four year pay deal salary increases that have long been agreed and staff can be given their back pay that they have waited far too long to have. This, we believe, could be completed before the Christmas Pay Packet or very early next year should full agreement be reached.

To that end, your union, is pushing LUL and its Tube Lines Management to finally and fully reach settlement with us and we have requested release of all Tube Lines Representatives to come to Unity House to fully discuss this matter on the 4th November. If we do not reach a solution and agreement then we will be deciding what Industrial Action will be needed to conclude this matter.

For further details or clarifications please email [email protected]

October 12, 2016

Tube Lines: Where's our Pay & Pension?

Tube Lines: Pay, Pensions and Night Tube

All three issues have now become intrinsically linked together. LUL/ Tube Lines want to state that the Pay cannot be settled without agreement to Night Tube. The RMT are saying that there will be no agreement to Night Tube unless the Company agree to entry into the TfL Pension Scheme for all. Throw into this complex web that LUL have now imposed Night Tube running on the Jubilee Line and are about to start on the Northern then matters are coming to a head.

So I think it is important to recap on where we are with each item.

Pay

Pay discussions stalled on the issue of the Company Offer differing from that given to LUL staff. All through the talks Tube Lines had stated it would be the same as LUL only for us to receive a final offer that was fundamentally different. Whilst the money was the same, there was none of the guarantees of no change of rosters, work life balance etc. Indeed it stated that staff would have to move to Sunday to Thursday and this had major impacts on our members. In LUL Engineering staff could stay Monday to Friday even on Night Tube Lines.

For clarity, we see no reason why implementation of the Pay rise cannot take place NOW.

pay-night-tube-offer-rmt-05-02-16-1

2015-pay-agreement

This offer was therefore unacceptable and the Night Tube Sections needed to be altered to meet the aspirations of our membership

Night Tube

LUL have now implemented night tube on the Jubilee Line and are about to start it on the Northern. However, Tube Lines have agreed that no further implementation of Sunday to Thursday working will occur at this time. Your union have made it clear that if this position changes with regards to this then we will have no choice but to ask our executive to name strike action.

Also, some staff went Sunday to Thursday a while ago such as Track Staff and the company alleged that this was not linked to night tube. This obviously, is not the case and we are making sure that any agreement incorporates all staff and that these changes are very much part of our talks. We are also pushing that any staff wishing to be on a Monday to Friday roster should be able to transfer to LUL lines in equivalent grades. This would be on LUL terms and conditions and where vacancies exist.

Pensions

Discussions have taken place at a Joint Working Party in both Tube Lines and LUL and we are reporting back on any progress at Acas next week (probably Monday 17th October). LUL have again stated that they believe that the implementation date of April 2017 will be achieved and the issue is funding. We believe that there is money there now that Amey are losing the contract and demand an end to the two Tier workforce now.

There is never any money, unless of course, it is to pay for redundancy for higher level Managers to leave LUL before a Cap comes in on Redundancy Pay. There was plenty of money for that

What next?

The Tube Lines reps agreed to pull all these issues together and they either get resolved by October or we are back into dispute. Once next weeks talks at Acas are concluded then the reps will be call back and a full report and discussion will occur. Any offers or update will be sent out to our members first and you will need to let your reps know your views at that stage. Hopefully we can report progress and success. if not then our members will need to let us know what action they wish to take to take our demands forward.

In short, it’s time to give us our money and give us a TfL Pension and that time is NOW

September 23, 2016

Tube Lines Pensions Update

John Leach (LT Regional Organiser), John Reid (LT NEC Member), Senior LUL and Tube Lines Reps met today to discuss progress in the campaign to achieve Pensions for all staff.

It was noted that there was difficult talks in all areas however the talks in Tube Lines areas have progressed and we have visibility in nearly all areas regarding their proposed efficiencies to fund the pensions.

However, the talks in LUL have been less successful with Management tabling cuts to Main Terms and Conditions such as Pay, Annual Leave entitlement and increases to Hours worked. All of these are unacceptable and all are rejected. Similarly, it would appear that LUL are hoping to impose their previous proposals for efficiencies savings to fund pensions into the general austerity cut agenda. This would similarly be unacceptable and rejected.

In order to drive these talks in the right direction and maintain our deadline for progress of 5th October, we are now asking for Acas to be reconvened so that we can have a straight talking discussion on this matter. The fact is that there are plenty of efficiencies to be had from Amey losing their contract and our members want equality and an end to a two tier workforce

The reps will again reconvene after the 5th October and we hope to either announce progress or what action we may be forced to take regarding this cause

September 13, 2016

Tube Lines Pensions Dispute/ TUPE

The RMT have requested a Tube Lines Mass Reps meeting at Unity House on Friday 23rd September 2016 start 10:00 to report back to reps from the last ACAS meeting. We have set a six week deadline for progress on securing ‘Pensions for All’ and currently Joint Working Parties are being set up to review the costings and proposals.

At the same time, the RMT is massively concerned that the word TUPE is not being used with regards to staff following Amey not having their contract renewed. This has been raised with LUL who have confirmed that whilst they do not rule this out, it is currently NOT part of their plans.

This will be fully discussed at the meeting.

August 30, 2016

Tube Lines Pension Talks

Talks at Acas are to resume tomorrow, Wednesday 31st August regarding the implementation by April of the TfL Pension for all staff that work for Tube Lines (or TUPE’d to LUL/ TfL) for those that currently are not allowed to enter the fund.

It is expected that LUL will table its funding efficiencies tomorrow with a view to reaching agreement with RMT to self finance the proposal.

However, it is also important to realise that now that Amey are not having their contract renewed, that there is a lot of scope to fund the pensions from the massive savings privatisation will bring

More details will following after tomorrows meeting

July 11, 2016

Tube Lines Pensions

Tube Lines Pensions

The RMT met with Tube Lines and Senior LUL management on Thursday at Acas and following this meeting they have written to Unity House outlining their proposals on the issue of Pensions.

Steve Griffith has affirmed his intention to provide access to the TfL Pension Scheme for Tube Lines and ex-TubeLines staff providing it is self funding. The aim is for this to be done for the new financial year on 1st April.

The Tube Lines reps were released to fully discuss this matter on Friday 8th July and the following was agreed:

Our reps believed this was a positive approach but that our members are willing to take action if necessary
Unity House would therefore need to protect the strike ballot result by any necessary means to comply with the Anti-Trade Union Laws
The RMT would enter into further and detailed talks on the efficiencies necessary to make this proposal self financing. These efficiencies would be through the introduction of technology that would remove the need for current staffing arrangements. This would be financed by efficiencies in LUL and Tube Lines.
This would be in a very defined time period and that this matter would not be allowed to be dragged out.
Both LUL and Tube Lines representatives would now review the cost savings as a matter of urgency with a view to reaching agreement.

The RMT welcome this move and believe that we can deliver our members aspirations for equality of Pension Rights and ending a two tier workforce. We also believe that some of these cost savings can be achieved by not renewing the Amey Contract however that would not be possible until the end of 2017.

It should be stressed that we have been meeting with LUL alone at Acas. However, it is right and proper that this now shared with our sister unions as per existing agreements and we have agreed to that.

Further talks on the details of the efficiencies will now take place mainly under the LUL and Tube Lines Functional Councils for Fleet, Track and Signals, with a report back to Acas on our progress.

It is our belief that talks will achieve TfL Pensions for our members by April next year and if it doesn’t then Industrial Action will be necessary.

Unity is Strength

Tube Lines Pensions Update 10 7 16

Letter from LUL

June 30, 2016

Tube Lines Pensions Discussions

Further discussions under the auspice of Acas are due to take place on Monday 4th July when we expect full details of the company proposal on how the entry to the TfL Pension Fund will be self funded (for ALL members of the Tube Lines Pension including those that TUPE’d to LUL).

Following this meeting, the RMT will be reviewing the document and the RMT have requested all reps from Tube Lines are released to decide the next steps on the 8th July

May 19, 2016

TfL PENSION FUND – SUSPENSION OF TRANSFERS-IN

TfL PENSION FUND – SUSPENSION OF TRANSFERS-IN

I refer to my previous Circular NP/076/14, 11^th April 2014, the RMT has been informed that the suspension of transfers-in from external pension sources has now ended. This will mean that from 1^st April 2016 members of the TfL Pension Fund who have deferred (frozen) pension benefits are now able to consider transferring them into the TfL Pension Fund to buy extra pension benefits.

While the decision to transfer rests entirely with the individual member this is good news that members will again have this option.

The suspension began following the TfL Pension Fund 2009 Triennial Actuarial Valuation due to the increasing deficit and was agreed by the trustee following a request from the sponsoring employer. However, following the 2015 valuation the employer has not requested that the suspension continues.

You will recall that the RMT campaigned to get this suspension lifted from its implementation in 2009 and in 2013/14 this union collected over 200 signatures from TfL Pension Fund members which forced an “Extraordinary General Meeting” of the TfL Pension Fund which was held on 25^th April 2014 to discuss this issue.

This union and its representatives have been proactive in trying to get the suspension lifted and without such pressure pension fund members may not have had the opportunity to enjoy this benefit again.

The National Executive Committee in consideration adopted the following report on 19^th May 2016:

“We note that the suspension of transfers-in ended in March 2016. While it is a decision for members of the fund to decide whether or not to transfer benefits from external sources into the TfL Pension Fund, the fact that individuals now have this option is welcomed.

It is further noted that RMT representatives and members forced an Extraordinary General Meeting of TfL Pension Fund in April 2014 to discuss this union’s opposition to the suspension of transfers-in. We therefore instruct the General Secretary to contact our members across LUL/TfL thanking them for their support on this important issue.

Branches, Representatives & all Underground and Former LT Employers to be informed.”

It is important that members who are considering transferring pension benefits into the TfL Pension Fund seek Independent Financial advice before doing so. The RMT are unable to offer such advice.

For further information regarding transferring-in please contact the TfL Pension Fund at:

TfL Pension Fund

Wing over Station

55 Broadway

London SW1H 0BD

Phone 020 7918 3733

www.tfl.gov.uk/pensionfund

I will keep you informed of developments.

Yours sincerely,

Mick Cash

General Secretary

April 23, 2016

TfL Pension: 'Transfer In' Issue Won (existing members only)

Following pressure and a concerted campaign by the RMT through the Pension Consultative Committee Members, Trustees and Unity House, LUL have been forced to allow existing TfL Pension Scheme members to transfer benefits from other funds into their TfL Pension.

This means that former Metronet and Tube Lines (among others) who are already in the TfL Pension scheme now have the option to take their existing pots from other pension schemes and transfer that money into the TfL Scheme. This should only be done following independent financial advise.

The TfL Pension initially prevented this from happening six years ago, however, following our campaign, they recognised that they could no longer maintain this position without a rule change of the Pension Fund, something that would have been severely opposed.

Now the struggle continues to get all staff in LUL (ex-Metronet etc) and those in AP JNP entry into the TfL Pension. AP JNP (Tube Lines) staff are in the process of being balloted over this issue

April 20, 2016

TFL PENSION FUND – 2015 TRIENNIAL ACTUARIAL VALUATION

TFL PENSION FUND – 2015 TRIENNIAL ACTUARIAL VALUATION

Following the 2015 triennial actuarial valuation of the TfL Pension Fund the results reveal a deficit of £396 million with a funding level of 95%. This is a significant improvement on the previous valuation carried out in 2012 which revealed a deficit of £699 million (funding level of 89%).

While investments have significantly performed between valuations this gain has been offset by the reduction in other assumptions such as the discount rate. The discount rate is an assumption on how well investments will perform in the future.

In effect the improvement in the funding level is equal to the deficit correction payments made into the fund between 2012 and 2015. I would add that while the deficit has reduced the future service cost (benefits built up in the future) has increased.

Presently the employer makes annual future service contributions of 20.4% and deficit recovery contributions of 10.6% totaling 31%. Under the schedule of contributions the employer is also due to make a deficit correction payment of £37.8 million by March 2018. Members pay contributions of 5% of pensionable earnings.

However, while the shortfall has reduced there is still a deficit which needs to be corrected.

Following discussions between the TfL Pension Fund Trustee and the employer the following agreement has been reached:

To increase the employer future service contribution rate from 20.4% to 25.55%

A deficit recovery period running until 2023

Reduce the employer deficit correction contributions from 10.6% to 5.45%

The employer to make a one off lump payment of £37.8 million in March 2018

Member contributions to remain at 5% with no changes to benefits

The National Executive Committee in consideration noted and adopted the following report on 19^th April 2016:

“We note that the Trustee and TfL have agreed to a set of proposals to recoup the deficit in the TfL Pension Fund.

While it is noted that our representatives on the Trustee Board requested that the recovery period should be shorter, this union accepts the final agreed proposals.”

April 20, 2016

TFL PENSION FUND – CONTRACTING-OUT PROPOSALS

TFL PENSION FUND – CONTRACTING-OUT PROPOSALS

As a result of Government legislation Defined Benefit (Final Salary) pension schemes, such as the TfL Pension Fund, are no longer able to contract-out of the State Second Pension. As from 6^th April 2016 both members and employers will see their National Insurance Contributions (NIC) increase by 1.4% and 3.4% respectively as the rebate associated to contracting-out is abolished.

While members will have no choice but to accept the increase in NICs, the Government has put in place legislation which will allow employers to recoup their additional payroll cost by either changing future service benefits or/and increasing contributions without the need of trustee consent. However, employers will have to consult with members and their representatives.

TfL have stated that they do not intend to recoup their contracting-out National Insurance Contribution rebate, estimated to be £25 million per annum. This means the employers additional payroll cost will not be passed on to members of the TfL Pension Fund. However, management has indicated that this may be reviewed in the future.

Government legislation allows employers a five year window between 2016 and 2021 to recoup the rebate.

The National Executive Committee in consideration noted and adopted the following report on 19^th April 2016:

“We note that the employer has informed the TfL Pension Fund Trustee Board that they do not intend to recoup their additional payroll costs associated to the ending of contracting-out.

However, while this is good news for members of the fund it is noted that management have indicated that they may revisit their decision. Therefore, any future developments should be reported back to the National Executive Committee.”

I will keep you informed of any developments.

October 24, 2015

Colas Rail Pension Valuation

Num: NP/211/15

To: The Secretary All Branches & Regional Councils

Dear Colleagues,

COLAS RAIL SECTION OF THE RAILWAYS PENSION SCHEME – 2013 ACTUARIAL VALUATION

I refer to Circular NP/050/15, 25^th March 2015, our representatives met with management on 11^th September to discuss the Colas Rail Pension Scheme proposal. It was made clear by the RMT once again to management that the employer was mainly responsible for the large deficit in the scheme and that they had a duty to help make the fund affordable for members.

While management were reluctant to accept they were responsible for the shortfall they did agree that they would consider taking some of the deficit correction payments away from members of the scheme. However, it was unlikely that member contribution would be below 20%.

It was also suggested by the RMT that a cap on member contributions should be introduced to protect active member from seeing their contributions becoming unaffordable in the future.

Management agreed they would go away and consider the RMT’s proposals and respond accordingly.

Please find below managements amended proposal:

Member contribution to increase from 15.68% to 20.68% minus salary sacrifice savings 18.5% approximately

Employer contributions to remain at 23.52% but Colas Rail to make 12 lump sum payments of £1.7m pa

Member deficit correction contributions to be capped at a maximum of 11%

The General Grades Committee in consideration of this proposal on 20^th October 2015 adopted the following report:

“We note that that following a meeting with RMT representatives’ on 11^th September, management have formally proposed to cap member’s future deficit correction payments. This will result in the employer making additional lump sum payments into the fund to reduce the shortfall now and in the future.

While it is noted that the member contribution rate will be in the region of 18.5%, it is recognised that before the discussions with our representatives the member contribution rate was set to increase from 15.68% to 35.8%.

These proposals can be found on file with the enhanced Defined Contribution scheme management have also proposed in the event members are unable to afford the contribution rate mentioned above. It is noted that the employer is also offering financial advice for members.

In light of the progress our representatives have made we instruct the General Secretary to inform management of our acceptance of their revised proposals.

Branches and Regional Councils to be informed.”