NATS Pensions (Split from Pay 2009 thread)

[Dan Dare]

While looking for onenatsonepension.com I did get to this cached version, which does have all of the links to the other relevant articles from the CAA, BA etc.

Highlights include: -

Dear Colleague

NATS PENSIONS SCHEME - UNIONS MEET MANAGEMENT

Firstly, thanks to all of you who took the time to respond to the circular dated February 2006. Your comments were most welcome and show the depth of feeling amongst members in support of defending the existing pension scheme arrangements [...]

In response the NTUS stated the following:

Welcomed the fact that Management recognised the strength of feeling amongst the membership on the matter of pensions and re-stated that we have a clear mandate to oppose any changes to the existing arrangements including the setting up of a two tier scheme for new employees.
Didn't wish the tri-ennial review to be brought forward as we have complete faith in the Scheme Trustees and Scheme Actuary who administer the scheme on a day to day basis. If at any time they identify the need to consider the existing or future viability of the scheme we would be the first to indicate our desire to have a dialogue through the existing arrangement which is the NATS Joint Pensions Committee.
Regarding the pressure being applied by the customers on the Regulator we requested that NATS arrange for representatives of the NTUS to meet with the British Airways CEO when he attends a NATS function on 8th March. NATS did not feel that it would be appropriate for a customer to debate an internal issue and declined the request.
The NTUS also finds it somewhat ironic that the Regulator is also a part of CAAPS albeit the CAA Section.

The NTUS will continue to campaign with members to oppose any changes to the current arrangements and any proposals to set up an alternative scheme for new employees.

Two further points:

Management intend to set up a Question & Answer process on Pensions. The NTUS agreed to input comments.

Paul Barron and colleagues will be conducting Road Shows around NATS within the next few weeks and they intend to raise the issue of Pensions. The NTUS welcomes this opportunity for members to be directly involved in the debate and therefore asks as many as possible of you to ensure that you attend a session at your unit.

Finally, we see this campaign to defend our pension scheme as being a marathon rather than a sprint. With that in mind the NTUS have set up a small working group to draw up a campaign strategy and should the need arise we will be calling for your support. In the meantime, as before, your comments and ideas on campaign activities would be most welcomed.

ONE NATS - ONE PENSION SCHEME
Yours sincerely

Alastair Nicolson
Trade Union Co-ordinator

Some of the Q & As were still available including: -

Q7. Are we totally protected by the Deed & Trust?

The recent removal of early retirement under age discrimination legislation,
shows that our pension is not totally safe, regardless of the promises made.
Legislation will and does change, over a period of time. Also, any sell-off may change your pension terms, as they only apply for as long as you work for Nats! There are no concrete guarantees that we will not be worse off.

Q8. Is the surplus running out?

There is no sign of the surplus running out. Markets are all performing well nd expected to continue to do so. The long term trends show a steady rise but there will always be down turns. We need to ensure that we have a healthy surplus to cushion us during these periods.

Q9. Is it all about selling off parts/all of Nats?

This is a very important question. It appeared very clear after the discussions at conference, that other ATM providers, even if privatised, will protect their interests. That leaves us vulnerable to a takeover!! Reduced costs and limiting future liabilities will make the company a very attractive purchase, especially NSL. The pre-budget report flagged the government's willingness to sell any of it's interests, and Nats specifically.

Q10. Why are our customers forcing us to change our pension scheme?

What they seem to say is that Nats must not make short term savings by reducing pension contributions, then come crying to them later to make up any shortfall. For those who provide Pensions to staff, we may even be the cheapest when it comes to Employer contribution rates at only 12.2%.

Responses to CP2 below:

BA Response:
For instance, it would be unacceptable if NATS were able to benefit from savings in operating expenditure such as those that could be made by cutting back on pension contributions, at the expense of higher costs in future. We therefore urge the CAA to take this incentive effect into account when setting the proportion of total pension costs that is to be passed through to users (Source Page25 8.14 http://www.caa.co.uk/docs/5/ergdocs/...ishairways.pdf ).

We are therefore inclined to support the CAA in their view that NATS have been unduly influenced by the weak growth trends in the last few years, and have not taken sufficient account of longer-term trends (Source Page15 6.5)

[...]

Q12. What if there was a problem in the future?

Currently, it is up to Nats to make up any shortfall in the scheme. By maintaining a healthy surplus and not running it down, combined with a well managed scheme, we do not foresee any problems. If we believed there was a problem with funding, we would be banging on Nats door to ask for changes
and would be willing to explore all options to ensure the continued growth of an excellent single scheme, able to provide us with the benefits we have earned.

Q13. Are all company schemes in difficulty?

Firstly, the Nats CAAPS SCHEME is NOT in any difficulty, nor should it be so.
TESCO, one of the UK's largest employers, has no plans to change its final salary scheme. In a recent survey, 31% of companies operating Defined Benefits Schemes (3596 from 11600) were still open to all staff. That equates to some 5.4 million people (current employees, active and deferred pensioners). We have been unable to find an example of a healthy scheme closing!