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Colas Rail 2013 Railway Pension Scheme Valuation

3 December 2015

TSSA has received a renewed proposal from Colas Rail in regard to the Railway Pension Scheme and the future joint contribution rate (JCR).

 

When the 2013 valuation was announced it meant that the contribution level for the employee rose to 35.8% and for the employer to 53.7%. Whilst Colas Rail was willing to keep the scheme open, it was the opinion of the TSSA that the employee rate was unaffordable for our members.

TSSA welcomes a further proposal received from Colas Rail on the JCR. The proposal is that the employee contribution rate would rise to 20.68% and the employer rate remains at 23.52%, with Colas paying a lump sum estimated at £1.7m per annum starting on the 31st December 2015. The 60/40 shared cost principle of the scheme would remain and the employee contribution rate would be capped at 20.72%.

This proposal provides protection against further deficit increases that may increase the contribution rate. Colas Rail is contributing £1.7m per annum to the fund to reduce the deficit and the salary sacrifice will be used to the benefit of the employees. Also the parent company has reconfirmed its guarantee to the fund and that has allowed contributions to remain lower.

Colas Rail also confirmed the alternative RPS DC scheme is available for all Railway Pension Scheme members who may transfer to the DC Scheme. Anyone thinking of doing this should take independent financial advice. The TSSA has an agreement with Keystone Financial Services who can provide such advice, contact by email is m.teal@keystonefinancial.co.uk

Please note this article is only relevant to members who are currently in the Colas Rail section of the Railway Pension Scheme.

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