Serco members concerned about review of pension provision


Serco members concerned about review of pension provision

Serco has written to hundreds of members of the Serco Pension and Life Assurance Scheme (“SPLAS”) about proposed changes to their pension provision.

Stack of pension coins declining in size

The company is proposing to deal with cost pressures in SPLAS by increasing contributions for a majority of members and ending membership in the scheme for others.

The increase in costs is a result of the latest actuarial valuation of the scheme. Changes to the assumptions underpinning the valuation have driven up the estimated cost of pension being accrued in the scheme.

Neil Walsh, Prospect’s pension officer said: “The estimated cost of future pension in SPLAS has increased but the scheme is almost fully funded and the overall cost is falling.

“There is significant leeway for the company to improve its proposal. It is particularly important for the company to recognise that many employees it wants to remove from SPLAS have a contractual right to membership.”

Prospect has organised a teleconference for any members affected by the consultation to raise their concerns and provide input to Prospect’s formal response to the consultation. Please contact your local rep or negotiations officer if you would like to participate in this teleconference.