This page will be updated frequently as more information becomes available
Below are the regular updates that Community has distributed to our members in the NSPCC
28th July 2009
Dear Member,
NSPCC management have announced that they will close the final salary pension scheme. This comes despite the many objections that Community raised on behalf of our members throughout the consultation period. Community is disappointed that management has chosen to close the scheme regardless of the evidence that the existing final salary scheme could be managed by contributions from members of the final salary scheme.
Community have convinced the Society to defer this action for 3 months until December 2009. Community has also negotiated for Ian Chivers (Finance Director) to release to Community the actual pension figures in September 2009. Community have already indicated the need for further discussions once this data has been analysed.
As previously advised, Community believes that by closing the final salary scheme the NSPCC will in effect offering you less favourable terms & Conditions of employment, due to many of you currently receiving the contractual benefit of the non-contributory scheme.
Therefore, when the scheme is officially closed in December 2009, we will be contacting members to advise them on their legal and contractual rights.
If you have any questions or comments, please either email: nspcc@community-tu.org
Or call the Member Service Centre on: 0800 389 6332
Friday 26th June
NSPCC Update
The pension scheme continues to remain an issue of concern for many members. It’s impacting on staff morale. We understand this issue does not affect all members or staff but we know it’s just one example of a number of employment issues going on within NSPCC at the moment. As a member, you know Community is ready to represent your views and take action on your concerns.
If you know any colleagues that share these concerns who have not joined Community yet, please forward them this email. It’s easy to join online or over the phone (0800 389 6332).
Regarding the final salary pension scheme we had a further meeting this week and here is a summary of our current position:
· The union has taken professional actuarial advice on the position of the NSPCC Pension Scheme and, pending receipt of the detailed results of the full scheme valuation that is being undertaken at present, it does appear likely that the cost to the employer of maintaining the Scheme for current members will have increased;
· Following consultation with members, the Union’s position is that the Scheme should be maintained in its present form, with current members continuing to accrue benefits;
· However, members also indicated that they would be prepared to pay higher contributions to offset at least part of the additional costs that will arise;
· The Union’s actuarial advice is that additional contributions of up to 6% of pensionable pay (not 25% as stated by NSPCC management) would offset a significant part of the likely additional costs but a final view cannot be arrived at until the results of the actuarial valuation are available, which might not be until September;
· The Union has said that when the definitive valuation figures are available, it is prepared to enter into detailed discussions with the employer about how the existing pension arrangements can be maintained on the basis of higher contributions from members; and
· In the discussions it became clear that a fundamental issue was not cost to the employer but the risk involved. Community believes that a responsible employer should take a greater burden of the risk rather than, under the current proposals, transferring it all to the employee.
As a result of our meeting, Finance Director Ian Chivers welcomed the alternative proposals that we put forward and said that he would put them before the NSPCC trustees. NSPCC wishes to continue further consultation. Community welcomes this as we believe constructive dialogue is the best way to achieve an acceptable outcome for our members. We will let you know about any further meetings.
In the meantime, if you have any more questions you can email mailto:nspcc@community-tu.orgg or contact our NSPCC organisers:
Lesley-Anne Ure 07710 709 938
Dean Apps 07834 745 816
Or visit the Community Union website: http://www.community-tu.org/
For help with an individual issue, call our Member Service Centre: 0800 389 6332
In Unity,
The Community Team
Friday June 12th 2009
Following our e-mail communication on Monday 8th June, please find below notes and outcomes of the meeting between Community and NSPCC regarding closure of your Non-Contributory and Contributory Final Salary Pension Schemes.
It is important to note that this meeting was regarding outcomes of consultations conducted by both parties (Community and NSPCC) to gauge opinions on the closure and not to open negotiations about the proposal. As contained within these notes Community will be formulating a counter proposal and circulate this to members before the next meeting with NSPCC on June 22nd.
It is important that we know which of our members participate in what scheme. Many of you have already e-mailed us to let us know and we’d like to thank you for that. However, if you haven’t contacted us, it is important to let us know. Please e-mail nspcc@community-tu.org or telephone 01562 749173 and leave a message on our automated system stating your name, date of birth and the pension scheme that you participate in.
In Unity,
The Community Team
MEETING BETWEEN COMMUNITY AND NSPCC 11TH June 09
PENSION CLOSURE PROPOSAL
Present: Ian Chivers (NSPCC Director of Finance), Phil Horrobin (NSPCC Employment Relations Adviser), Sean Redgate (Community Officer), Bryn Davies (Community Actuary), Lesley-Anne Ure (Community Officer), Steve Landy (Community Member representing NSPCC staff).
NSPCC management seem confused about the consultation process. This meeting was held so that NSPCC and Community could examine the evidence provided by speaking to the affected employees. While Community was able to produce charts, tables and graphs from the Pensions survey that we have conducted, NSPCC management provided only anecdotal evidence based on the opinions of the Director of Finance. NSPCC stated that “most pension members were resigned to the closure of the current Final Salary Scheme”.
Community does not believe that relying upon anecdotal evidence is sufficient, when taking a decision that will substantially affect a large number of employees.
In terms of consultation, NSPCC informed Community that they had conducted 8 “roadshows” across the country. NSPCC included interviews between individual members of the at-risk pension schemes and Barclays Financial Advisers. Community Reps stressed that such interviews should not be considered part of a meaningful consultation as they were confidential conversations about peoples’ futures and potential entry to a stakeholder scheme provided by Barclays (almost a sales pitch). Community further stressed that these 1-to-1 talks should have focussed on the individuals’ opinions on the closure of the current schemes not to pressgang people into a stakeholder scheme.
NSPCC stated that legal advice had been taken regarding potential breach of contract for many staff in the Non-Contributory Scheme, should it close to accrual, stating that this situation does not present a breach of contract. Community’s legal advice believes that closing the scheme to accrual will be a breach of contract.
Community Reps strongly urged NSPCC to bear in mind the damage the proposed closure is doing to staff morale, staff worth and staff’s sense of security. Community Reps also clearly stated that this situation affects longer-serving, and therefore, more experienced staff and could actively force valuable experience out of NSPCC as opposed to attracting it.
During the meeting it transpired that one of the prime drivers behind the Society’s pension proposals is not only related to the current financial position but also a move to unburden itself of any future risk that a good quality pension scheme may incur. Community Reps pointed out that a dutiful employer undertakes that risk as the Society has, up until now. Particularly as NSPCC staff face untold risks themselves simply by performing their job role and meeting their contractual obligations.
As NSPCC failed to provide current figures, and only referred to “ball-park figures”, it was agreed that Community Actuary, Bryn Davies, would liaise with NSPCC actuaries to formulate figures and potentially a counter-proposal. This counter-proposal will be discussed when all parties meet again (June 22nd ’09).
NSPCC expected Community to provide a counter-proposal at today’s meeting (11th June ’09). This was never the case. Today’s meeting was set to discuss findings from consultations conducted by both parties. Disappointingly, NSPCC had not changed their proposal following their consultation. Community, in good faith, attended the meeting to express the views of our members. Community members clearly expressed their views in our survey. The overwhelming position of Community members is to consult on options available to maintain the present pension schemes.
Community regularly posts updates on our website: www.community-tu.org/
For help with an individual issue, call our Member Service Centre: 0800 389 6332
To discuss the NSPCC Pensions issue email: nspcc@community-tu.org
Or call our organisers
Lesley-Anne Ure 07710 709 938
Dean Apps 07834 745 816
COMMUNITY UNION PENSION UPDATE 8th JUNE ‘09
END OF PENSION CONSULTATION PERIOD
You will be aware that NSPCC management initiated a statutory 60 day consultation to close Final Salary Pensions to accrual of further benefits. This consultation closed today.
During this period Community, after taking advice from our own Pension’s expert has undertaken a consultation with our members on this subject. Our expert came up with three options for members to consider. There has been an overwhelming response in favour of option 1, which was to keep the pension open but to increase contributions from members of the scheme.
On Thursday 11th June, a team of Community representatives will meet with NSPCC management to discuss the outcomes of the consultation so that both sides can present their findings. The Community team will consist of full-time officials and member representatives from Community.
Further to this, Community has taken legal advice regarding the contractual position of members within the NON-CONTRIBUTORY SCHEME. We will be releasing this advice to members on Thursday by post and e-mail.
No matter what pension scheme you are part of please e-mail us on nspcc@community-tu.org in order that we can complete a count of union members in each scheme.
We understand that times are uncertain for everyone concerned and will be regularly updating members as talks continue.
NSPCC Pensions Update
Welcome to the latest update.
NSPCC Community members Pension training
Community members at the NSPCC have rightly raised many questions about the proposed changes to their pension scheme. That’s why Community organised for several members to participate in a General Federation of Trade Unions one-day pension seminar. This seminar covered the fundamentals of pensions and enabled these members to put questions on your behalf at the pension roadshows currently being run across the NSPCC.
At a roadshow last week questions were put to NSPCC finance officer Ian Chivers. The meeting was dominated by the refusal of management to consider any alternatives to their proposed course of action.
One NSPCC employee and Community member, who wishes to remain anonymous, wrote:
"The more I find out about this, the more I realise how questionable are the reasons given by management for closing the scheme and the more I come to believe that this is an opportunistic attack on conditions of service for a large number of NSPCC staff, which our new private sector-style management will pursue into other areas over the coming months. The only way in which this can be resisted is by people joining the union and becoming active."
During the meeting, Mr Chivers announced that ‘the union had failed to make contact’. THIS IS FALSE.
Community has maintained throughout this process that it will meet directly with management once Community has finished consulting members on potential changes to the pension scheme. However, Community has had many conversations with management regarding the process of consultation, including potentially extending the consultation period. These points have been acknowledged by management and Ian Chivers is aware of this.
The NSPCC are adopting a heavy handed approach to consultation, whereby the legitimate concerns of employees are steamrollered by the magnitude of the financial crisis. The NSPCC have used this excuse to drive their changes while refusing to wait for exact details in a pension valuation. The NSPCC is taking advantage of this recession to try to wash their hands of their responsibilities to you, the employee. While the financial downturn has directly impacted on the viability of the pension scheme, the answer is not simply to transfer the risk to staff.
Community Union will continue to raise these issues with NSPCC management, however, we need your support. If you haven’t completed our survey, please follow the link on our homepage http://www.community-tu.org/ or go directly there by clicking here.
If you have completed this survey, consider forwarding this email to your colleagues and asking them to complete the survey. The stronger the feedback, the stronger the argument that Community can make in defence of your terms and conditions.
Update 2
April 2009
Welcome to the latest update.
Members of the final salary scheme should have received a communication from the Society that sets out the proposals to close the scheme and officially opens the consultation period.
When people hear the word ‘consultation’ it is not always clear what it means. A consultation about pensions is completely different to a consultation about redundancies. Government regulations state that an employer must consult with scheme members before it closes a scheme.
There is now a minimum of 60-days for those affected or their representatives to respond to the proposals. Community believes that this should be a meaningful period of consultation and should effective discussions still be ongoing at 60 days, that this should not be cut-off arbitrarily.
Community has taken advice from its own pensions adviser about the possible changes. Community is interested to hear your views on how the union should respond on your behalf. Community believes that there are some alternatives including the following:
- Keeping final pay benefits but accepting (an increase in) member contributions – the Society has already stated in its Q&A that member contributions of 20%-25% of salary would be required but we would want to see the detail of how they came to that conclusion.
- Allowing active members approaching retirement to keep final pay benefits for future service – we realise that this would not address the problem for all current members of the scheme. However, the injustice lies in the fact that the scheme is being closed. It may be better for some scheme members to escape than for everyone to suffer. It is also clearly the case that the closer you are to retirement the more difficult it is to make alternative plans.
- Moving to a hybrid scheme – a hybrid scheme would share some of the features of a final pay scheme with those of a money purchase scheme. This way the risk is shared by both the scheme member and the employer. An example of a hybrid scheme is a ‘cash balance plan’. This retains a benefit based on the employee’s final earnings, except that the benefit paid on retirement is expressed as a lump sum, rather than as an annual pension. Then on retirement the member can keep a quarter of the lump sum in cash but has to use the balance to purchase a pension, where the amount of pension secured depends on annuity rates at the time of retirement. The result is that the employer retains the investment and relatively limited mortality risk up to retirement but after retirement these are passed to the member.
These options are for your consideration and if you would like further information, then please let us know. Community Union is here to represent your views.
Community is currently surveying members’ opinions to these options. To complete the survey please follow the link:
Community Union NSPCC Pensions Survey April 2009
Please forward this link to your co-workers in the NSPCC.
We think a good way of doing this would be to set up a working group of members who can follow through this consultation process and ensure people’s concerns are represented effectively. We are contacting the society to suggest this process and we will let you know their response. If you would be interested in joining this working group then please email nspcc@community-tu.org .
As we have stated before, we know from experience pensions consultations are difficult processes and it is not easy to make changes to decisions. What we can assure you is that Community will ensure that the agency carries out the consultation effectively and that the agency considers all the options and hears your views.
Some of you have sent in detailed questions about the pensions changes. Rest-assured that we will respond to these now the full detail is available. If anybody has any further questions at this stage, please let us know by emailing nspcc@community-tu.org
20 February 2009
Pension Scheme Changes – Response from Community
Members of the non-stakeholder pension scheme will have received the email from Ian Chivers concerning the proposal to close the Pension Scheme to the build up of any future benefits.
What the email did not make clear is that, at this stage, this is just a proposal. There must be a period of consultation with the affected members of the scheme and their representatives. We have written to Liz Booth to remind agency management about their duties to consult on these changes, as this was unclear in the email that you received.
Community has asked its own pensions expert to look at the proposals and to report back with alternatives, where appropriate.
The consultation is a difficult process - Community has seen this situation many times before and the outcome cannot be certain. What we do know from our experience is that we had most success when we had strong union membership. So if you have colleagues that are not members, now is the time to encourage them to join.
I am sure many of you will have concerns about how this might affect your pension and we are concerned at the timing of this announcement in the middle of a redundancy process. Although the Union cannot give financial advice as we are not legally permitted to do so, we will communicate with you regularly throughout the consultation process about our discussions with the agency and the implications of the proposals.
Please feel free to forward this message to non-members. They can join straightaway over the phone (0800 389 6332) or online here:
Yours faithfully,Joe Mann MBEDeputy General SecretaryFrequently asked questions about the BUSWE transfer of engagements