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Members Urged To Act On Pension Scheme Deficit
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Date: 5th Mar 2007
As part of its campaign to persuade the Trustees of the No 1 and No 2 Pension Funds to bring forward the Scheme Valuation so that the size of the Group’s Pension Scheme deficit can be properly understood and decisions made about how best it might be eliminated LTU has asked members to write to the Board’s Chairman.
At the end 2006 LTU commissioned two reports from leading UK Actuaries, Hymans Robertson, on the size of Lloyds TSB’s Pension Fund deficit. Hymans Robertson, adopting ‘middle of the road’ actuarial assumptions, concluded that:
- Under the new funding regime the LTSB No 1 and No 2 Pension Funds have a combined pension deficit of £4.6 billion and not £1.5 billion.
- In order to eliminate the combined pension deficit over 10 years Lloyds TSB would need to make annual contributions of £610 million and not the £189 million they have said they will contribute
The next full actuarial valuations of the No 1 and No 2 Pension Funds under the new funding regime are not set to take place until 2008. The Union has written to the Trustees asking them to carry out those valuations now. Only then will there be a clear picture of the state of the Pension Funds. If, as the Union suspect, the combined pension deficit is significantly more than reported it wants the Trustees to reopen negotiations with the Bank on future funding and seek to agree a more realistic and favourable schedule of pension contributions.
The Pension Fund Trustees are meeting on the 15th March 2007 to discuss LTU’s proposal and the Union has produced a petition postcard which it is urging members complete and return to the Union so that they can be delivered on mass to Ewan Brown, Chairman of the Lloyds TSB Pension Funds before the meeting.
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