Feedback and Suggestions

[Adam Schofield]

This thread is titled Feedback and Suggestions, so I shall limit comment to such, and post another comment on the other live thread about other wider issues.

I strongly support the work that HPA have undertaken to date, and its good to know I am not the only one struggling to know how to react to the saga. I have read and re-read the HPA letter to Halcrow, and for the life of me cannot see any aggressive or antagonistic tone whatsoever. Perhaps a hint of frustration, but given its in response to the threat-style choice that Halcrow have given us with so little information on the justification, that’s hardly surprising. I say this as someone quite content to give up the blatantly unsustainable 5% indexation, but would like to be treated as if I were an adult in being provided the necessary information, and to have an informed understanding of the risks.

However, couple of observations. Can I note that with summer holidays coming, we will need to be given a steer say 2 weeks before the 5th August? Leaving it to the last minute will be too late for me. Also, thoughts/comment on attendance of the scheduled meetings could be useful. Perhaps meeting afterwards at a local establishment?

[Stephen Brichieri-Colombi]

HPA has just been informed that the legal route being followed is through something called the Regulated Apportionments Arrangements, details of which are available at
http://www.thepensionsregulator.gov.uk/docs/regulated-apportionment-arrangements-statement-august-2010.pdf
This is a rarely-used arrangement (which might soon become very popular with unscrupulous employers) which involves an independent Determination Panel whose decisions can be reviewed by the Pension Regulator Tribunal. Interested parties can give evidence.
More to follow ...

 

[Jane Tordoff]

I will be attending the 18.00 roadshow on 28 June in Swindon, I know of three other HPA members who are also going to this one so meeting afterwards for a drink is a good idea.  The HPA Committee plan to draw up a list of questions to put to the roadshow presenters.

[Jane Tordoff]

All US companies that buy in the UK behave the same way. Have we all forgotten the promises made to the Government by the US Company that bought out Cadbury's?  They promised not to shut the Keynsham factory and make staff redundant, within 2 years they had done the exact opposite.

CH2M are required by law to publish "triennial valuations".  Why has The Pension Regulator not forced them to do so?

Ethics – done once a year so the shareholders and the stock market are happy, which enables the hierarchy can get their bonus.  If they were an “Ethical” company they would adhere to the covenant.

The HPA Committee are working hard to try and obtain the best deal for all pensioners. 

[John Ratsey]

I left CH2M in 2013. As a deferred member I would like to echo the caution suggested by Nick Swannell and Meelit. The main thrust of the discussion to date appears to be on how we might get this situation reversed. Realistically I am not hopeful that that will happen. We should not forget that we would probably have all been destined to or in the PPF had CH2M not acquired the company.

If the position has been that untenable for years then why has the company/Trustees waited this long to make their offer? Surely we are entitled to be sure that this is the very best deal that CH2M can offer without compromising its own viability. Anything less I would consider as theft.

You have raised some pertinent points on which I would comment:
1. While some may still hope, based on treating their pension as honouring a contract, for their 5% increases for pre-March '99 accruals to continue, many appreciate that 5% is over-generous consiering the current low inflation and invest terms. However, 0% is not a reasonable offer for those who expect, based on typical life expectancy, to be drawing their pension for many years.

2. If some/all the money paid by CH2M had gone into HPS, as the judge in 2011 might have ordered if he had received some input from either the HPS trustees or the Pensions Regulator, then the hole in HPS would now be somewhat less and combined with what CH2M has offered would give a more reasonable compromise.

3. HPS first moved into deficit in the '90s as a result of poor investment performance. See the scheme reports to members. However, the trustees have been advised by an actuary who, as indicated in this report takes a long term view which, presumably, anticipaed the return of rampant inflation to swell the assets and shrink the liabilities.

4. You are correct to emphasise the question of what CH2M can reasonably afford. ie not what CH2M's version of the Halcrow accounts indicates what Halcrow can afford. We know that US companies have specialists in how to move profits around to minimise their tax bills and, in this context, pension scheme contributions can be considered to be a tax.

[Clive Williams]

I would recommend that everyone writes to their MP [http://www.parliament.uk/mps-lords-and-offices/mps/]  and also the Pensions Advisory Service [http://www.pensionsadvisoryservice.org.uk/] and ask the Pensions Regulator [http://www.thepensionsregulator.gov.uk/] a direct question as to why they haven't enforced the publication of the valuations.

Make a fuss, the bigger the fuss the more chance it will annoy someone into doing something

[Stephen Brichieri-Colombi]

Clive
We used the approach of writing to tPR in 2011. Over 50 pensioners wrote to tPR to express their concerns over the failure of the scheme of arrangement to protect the HPS. The good news is that, as a result of this tPR wrote to Halcrow a few days before the hearing in the High Court to say they shared these concerns (they had ignored an earlier letter from the Trustees on the same subject). The bad news is that Halcrow ignored the letter and tPR, as usual, failed to act on the shared concerns.
tPR have promised to respond to our letter detailing their failings, but have not yet done so. Further letters from pensioners could only help. Better still, contact your MP or attend a Road Show. We can provide support for both actions.