RMT DEFENDS AMEY RAILWAYS PENSIONS

RMT helpline 0800 376 3706 :: february 2011 :: RMTnews 16 RMT has successfully blocked an attempt by Amey management to freeze pensionable pay for and remove unprotected employees from the Railway Pension Scheme (RPS) with effect from November 2010. RMT immediately objected to Amey management’s proposed changes to the Amey Rail Section of the RPS when proposed last July which would have reduced pension benefits at retirement. RMT general secretary Bob Crow said that had these pension changes been accepted employees with ‘protected’ and ‘indefeasible rights’ would have seen the real value of their pensions fall year on year until retirement and those unprotected members would have been forced out of the RPS and offered in its place a grossly inferior money- purchase scheme. “RMT’s position was clear that management proposals like these which attack members’ pension benefits are totally unacceptable and must be resisted with every means possible. “Although the union recognises the difficult financial situation many final- salary pension schemes face, this does not give employers the green light to alter or close workers’ deferred pay benefits,” he said. However, following a number of meetings between the union and management Amey modified its original proposals to the following: • Unprotected members will remain members of the RPS. • For any pay increases related to pay anniversary dates or promotions after December 31 2010, the increase in pensionable pay will be restricted to a maximum of the increase in Retail Prices Index, plus one per cent. This will include pay increases resulting from promotions. • The capping of pensionable pay increases would only be for three-year period and therefore would be re-examined in 2013. RMT’s also made strong representations over the replacement of the Amey Defined Contributions Scheme (Saver Plan) which will be replaced by a different scheme called ‘Amey Group Personal Pension Plan.’ This change is the result of the introduction of the National Employment Savings Trust (NEST) which is intended to be introduced by the government in 2012 and will make it mandatory to enrol employees into a pension scheme which meets or exceeds certain legal standards. Unlike the Saver Plan, in which Amey ‘double matches’ contributions, the new scheme will only ‘single match’ contributions for employees below senior manager level up to six per cent. Employees who are current members of the Amey DC Scheme will be consulted about this change and informed of their options but those who are not in a pension scheme will, unfortunately, not be consulted. However, Amey has said that those employees who have been employed for less than six months will still have the option to join the current DC Scheme. Amey stated that employees with more than six months’ employment ‘may’ be able to join the present DC Scheme, but this is not guaranteed. The union has asked for further consultation on the new DC arrangements and will continue to keep union members who are affected informed on any developments. RMT regional organiser Brendan Kelly said that the changes which have been agreed represent a significant shift away from management’s original proposals and go some way protecting members’ of future pension entitlement. “The decisive role played by RMT representatives should not be underestimated in protecting members’ future pension entitlement and without such representation and trade union organisation members’ future benefits would continue to be eroded and attacked by employers,” he said. RMT DEFENDS AMEY RAILWAYS PENSIONS Union sees off attempt to reduce pension benefits for members working for Amey