ITN pensions proposals dismay
Union negotiators have expressed dismay at ITN proposals that will have a severe impact on members' pensions.
“Unlike many pension schemes the ITN Scheme is actually in surplus.”
In order to avoid substantially increased employer contributions to the company Defined Benefit Pension Scheme, ITN are proposing:
- Increasing pension scheme retirement age from 60 to 65;
- Future 'accrual' rate to be 1/60ths (a third of active pension members are currently on 1/50ths);
- Capping 'pension in payment' increases to the lesser of 2.5% or RPI, it is currently the lesser of 5% or RPI. This will impact on how much members' pensions increase each year once they start drawing on the scheme.
BECTU National Official Nigel Mason commented: "These proposals will not to be well received by our members in the ITN Pension Scheme, and will clearly have a major impact on when they can afford to retire and how financially secure their retirement will be.
"We note that unlike many pension schemes forced to take action because of massive financial deficits, the ITN Scheme is actually in surplus.
"ITN have yet to fully explain what has changed since significant amendments were made to the scheme only three years ago, to warrant such drastic measures.
"Members are also unhappy that all the pain in these proposed changes appears to be borne by staff alone and we would expect ITN to revise their proposals to share that burden".
An ITN Joint Shops meeting for members of BECTU and the NUJ is being held at 1400 on Wednesday 18 October 2006 at The London Welsh Centre, Grays Inn Road.