UK - The Trades Union Congress is making wide-ranging changes to its pension plan to offset an MFR deficit of £8m.
The TUC Superannuation Society’s executive committee says “urgent corrective action” is needed to resolve the current situation.
Documents seen by IPN’s sister publication, Professional Pensions, say: “Under the requirements of the MFR the current contribution rate, 25% is insufficient to meet the shortfall and to avoid a negative certificate being issued by the actuary there would have to be a substantial increase to 47% in the firm’s contribution rate.”
The deficit has soared from £6.4m since December.
Proposals from the executive committee include:
- Reducing accrual rate on the DB scheme from 1/50 to 1/60.- Scrapping the scheme’s current early retirement provision.- Increasing the employer contribution rates from 25% to 29.6%.
This week's edition of Professional Pensions is out now.
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