As an employee of Chelmsford Star Co-operative Society Limited you will have recently received a communication regarding proposed changes to the pension scheme (Employees’ Superannuation Fund) currently available to you.
The Society is proposing three changes to the current scheme as follows:
- Changing the normal retirement age from 65 to 67
- Offering a single accrual rate of 1/75th of pensionable pay per year of service
- Increasing the members’ contribution rates from 6.6% to 8.0%
Any changes agreed are likely to be introduced in January 2013 and will apply to future service only. Any accrued benefit to the date of the proposed change will be protected.
NACO is committed to maintaining the provision of a Defined Benefit (DB) pension scheme available to all members as we believe a pension that guarantees the amount of pension to be paid in retirement provides security for individuals.
In recent years many employers have closed DB schemes due to the financial demands and risks borne by the Employer. Common reasons cited by employers for removing defined benefits schemes include falls in share prices, the increased cost of regulation (inc. Pensions Act 2008), and the simple fact that people are living longer in retirement.
The Society has made the proposals to alter the scheme to:
- To protect all current members’ accrued benefits to date
- Provide a reasonable level of benefit for future accrual
- Allow the fund to remain open to future accrual
- Allow the fund to remain open for mew members wishing to join the scheme
We acknowledge the employer contribution paid by the Society is significant and will increase to 13% of your pensionable earnings if the proposals are agreed (currently 10.9% of your pensionable earnings).
The Society has opened a consultation period between 9th November 2012 and 9th January 2013 during which NACO will be focused on representing members’ views.
If you have any comments or opinions which you would like to discuss with NACO or request that NACO progress on your behalf, please contact the NACO National Office.