The triennial valuation of 2003 stated that the underlying costs were 26.8%, yet NATS chose to ignore that laibility and pay in much less. This mismanagement has caused our future expected underlying costs to be so high. The 2006 valuation stated that when NATS increase contribution to 20% in 2008, the surplus in the fund would be exhausted in around 6yrs. Thus from 2008, the contributions (average 20%) NATS make will be below what the fund needs. The much lower amounts and holidays in the years leading up to 2008, have cause as massive increase i the underlying rate
Furthermore, the method of projecting theses costs used by the Acutaries is the Projected Unit Method (see pensions valuations). This method requires that new entrants continue to join the scheme in order to replace those that retire so that the contribution rate calculated can remain stable.
If there are no new members , the average age will increase and the contrinution rates can be expected to rise
This suggests to me that we are being set up for failure as NATS will come to use in 15 years time saying that the underlying rate is 60% and we have no option but to close the scheme or become bankrupted.
I would suggest that those who have access to the CAAPS website (all members should)
www.caaps.co.uk print a few copies of the last trienial report and share it amongst your colleagues.
I for one believe that we are being sold a pup and will
VOTE NO for what it's worth. Even if they put through the changes, I am fed up that NATS sticks it's nose in the trough during the good times and is not willing to put back in during the "tough" times.