Pensions Recovery Plan

UNISON's Response to

Barnardo's  Pension Recovery Plan

 

Barnardo's has begun consultation on the changes it wants to make to the Barnardo's Average Salary Scheme (BASS) with effect from 1st April 2010. Consultation will end on 5th March. Barnardo's are planning to clear the BASS funding deficit of £148.7 million over the next twenty years. To do this they are proposing to increase member pension contributions by: 2% for those earning less than £15,000 a year; 3% for those earning between £15,001 and £40,000; and 4% for those earning £40,000 and above.

To help offset these significant contribution increases a salary
sacrifice scheme will be implemented (referred to as Barnardo's
Salary Exchange Scheme or BSES). This reduces both your and the employer's National Insurance contributions. The BSES should not lead to any loss of benefits including the basic State Pension. Neither should it affect the credit value of annual salaries in mortgage or other lending calculations.

UNISON broadly supports the BSES. It is the only way to reduce the cost of your increased pension contribution. If you continue to be concerned about BSES, go to www.unison.co.uk/pensions for more detailed information.

UNISON welcome the decision to retain the defined benefit scheme (BASS) as many employers want to close them down. Without a robust recovery plan, Barnardo's may have to do just that. Faced with substantial increases in pension contributions, BASS members may be tempted to switch to Barnardo's
Retirement Savings Plan (BRSP). UNISON would advise against this as it could well result in long-term pension loss compared to what could otherwise be achieved in BASS.

Barnardo's recovery plan does not fully protect the interests of BASS members. UNISON calls on Barnardo's to re-invest its
savings from the salary sacrifice scheme (BSES) into BASS and to use its property portfolio as an asset to reduce the deficit.   By
doing this, Barnardo's can lessen the proposed increases in
pension contributions. These demands are a realistic and wholly proportionate way to cushion the impact of the current recovery plan. We also want the period of consultation to be extended to
ensure it gives you the opportunity to be genuinely involved.

UNISON urges you to use the consultation period to make your views known, to ask questions and to support our views. A detailed pension bulletin has been circulated to all UNISON members.
UNISON will be at all the planned pensions road shows so talk to us there or email: timothy.stodell@barnardos.org.uk or
unison@barnardos.org.uk If we cannot answer your enquiries we will send them onto Harry Lister, our Regional Organiser and Alan Fox, our national Pension Officer.

 

If you are not a UNISON member, join NOW. Application forms will be available at the road shows or join on line: www.unison.org.uk/join/index.asp