200 Rolls-Royce employees who were active members in the Vickers pension scheme will earn future benefits in a merged scheme for their future service it was confirmed this week.
The changes include guarantees for the active Vickers pension scheme members that they will not be disadvantaged on account of their pension being split. The company and trustees have agreed to fully buy-out the Vickers Scheme to reduce their risk exposure with benefits paid out by Legal & General.
The move follows negotiations involving the workers’ union, Unite which sees four of the Rolls-Royce UK defined benefit schemes (all in a surplus position) merged and benefits largely standardised and improved. During the negotiations involving Unite, Rolls-Royce UK and pension trustees it became apparent that it was not feasible to merge the Vickers Scheme owing to very specific trust provisions not common to the other schemes.
Steve Hibbert Unite Rolls-Royce convenor said: “This is a great outcome for the Vickers members. To be able to secure members’ benefits in full with a UK regulated insurer demonstrates how well managed the Vickers scheme has been over many years.
“This has been achieved by the trustees taking a careful and prudent approach when investing the scheme’s assets, the company paying the necessary contributions to ensure a strong funding position, and members agreeing to certain benefit reductions in 2007 to help ensure the sustainability of their defined benefit pensions.”
For further information please contact Unite head of media and campaigns Alex Flynn on 020 3371 2066 or 07967 665869.
Notes to editors:
• Unite is Britain and Ireland’s largest trade union with over 1.4 million members working across all sectors of the economy. The general secretary is Len McCluskey.