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Author Topic: Pension Changes  (Read 81273 times)

burns2015

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Pension Changes
« on: 20-04-15, 08:22AM »
Today marks the start of the 90 day Consultation Period, Here is the Q&A from todays T5.


Q1. What changes are you proposing to make?
To close all sections of the current pension scheme, including Pension Builder and Final Salary, to all colleagues and replace it with a new defined contribution scheme.
 Q2.  What is a defined contribution (DC) scheme?
In a DC scheme you build up your own retirement savings. The amount you build up depends on how much you and Tesco have paid in and how your money grows over that time.  When you retire, you can choose how to take these savings – whether as a regular income i.e. pension, a bit at a time (drawdown) or all as cash. Or a mixture of these.
 Q3. How much will the new scheme cost me and how much will Tesco pay?
You can choose to pay from 4 % of your salary into the new scheme and Tesco will match what you pay, up to 5%.
 Q4. How much am I paying into the scheme now?
Members of the Pension Builder section and Final Salary section are currently paying 5% and 7% into the scheme respectively.
Q5. Can I pay more into the scheme if I want to?
Yes, you can choose to pay as much of your salary as you want to, but Tesco will only match up to 5%.  For example, if you pay in £10 Tesco will pay in £10 up to 5% of your salary every year.
Q6.  How much pension will I get in the new scheme?
It’s difficult to be exact about how much you’ll receive from the new scheme because the amount you build up is specific to you and the choices you make. To help, we’ve created a calculator on www.FutureTescoPensions.com (user id: Tesco Password: Info2015) to give you an idea of what you could expect to receive, based on your age and salary.
Q7. What is going to happen to my existing pension?
The proposed changes will not reduce any Tesco pension that you’ve already built up. It only affects how this pension will increase before you retire, and how you’ll build up retirement savings in the future. Your existing pension will stay in the Scheme and be looked after by the Trustee until you’re ready to take it.
Q8. Why are you making these changes?
Over recent years the cost and uncertainty of providing this type of scheme has increased significantly. At the same time, our business is less able to absorb these extra costs as we face tougher market conditions and lower profits.
Q9. When will the scheme close, if the proposals go ahead?
If the changes go ahead, we propose to launch a new defined contribution scheme for all colleagues as soon as we are able to achieve this, but no later than February 2016.


Q10. I’m thinking of taking my pension soon, do I need to do anything now because a consultation has been announced?
No, nothing has changed in the Scheme and won’t change until after the consultation has concluded later in the year.

Q11. Can I still join the pension scheme or is it too late?
The scheme is open as usual and all Tesco colleagues can join the Scheme until the scheme is closed.

Q12. Will you be consulting with our unions on the changes?
Yes. We will be working closely with your unions throughout the whole of the consultation process.
Q13. Will I receive life cover in the new scheme?
Yes. If you die while you’re still employed by Tesco and paying into the scheme, your dependants will receive a lump sum payment worth four times your salary. Plus a refund of everything that you’ve saved - including Tesco’s contributions.  For any other benefits, e.g. ill health, please refer to the consultation letter.
Q14. If I haven’t received a letter, what can I do?
If you haven’t received a letter by 30 April, please call the consultation helpline on 0345 610 6379 who will be able to help.












Tegai

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Re: Pension Changes
« Reply #1 on: 20-04-15, 08:26AM »
What does "up to 5%" mean? Could be 0.5%?

burns2015

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Re: Pension Changes
« Reply #2 on: 20-04-15, 08:33AM »
means that's maximum Tesco will pay for example you choose to pay in 6%  Tesco will still only pay 5%.

Duracell

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Re: Pension Changes
« Reply #3 on: 20-04-15, 08:35AM »
The maximum the company will contribute is £50 per every thousand earned. Even if you elect to pay £100 per thousand earned.
My Opinion is exactly that, Mine.  Based on my view of what I know , see and what I would do.
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Loki

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Re: Pension Changes
« Reply #4 on: 20-04-15, 09:03AM »
Statement from Usdaw:

Tesco Pension Scheme - Proposed Changes

Dear colleagues,

As you are aware at the beginning of the year Tesco made an announcement which included proposals to close the Defined Benefit Pension Scheme to all staff.

There is a legal requirement for Tesco to enter into meaningful consultation with Usdaw  regarding this proposal.

As a result of discussions held with the company over recent weeks, we wanted to update you on the following:

- A consultative group has been established which includes Usdaw/SATA
  representatives from Stores, Distribution, Customer Service Centres, Tesco Bank
  and Usdaw Officials.

- A timetable for formal discussion and consultation has been jointly agreed.

- Formal pension consultation will start from Monday 20 April which all members
  of the pension scheme will have the opportunity to participate in.

What will happen from Monday 20 April

A personalised individual letter from Tesco will be posted to the home address of each member of the Pension Scheme. The letter will outline the following information:

- Why the company is proposing to make changes to your pension.

- What the company is proposing for the future.

- How individuals can find out more information.

- How individuals can give their views, feedback and raise questions during the
  consultation period.

The formal consultation period will run for a minimum period of 90 days. Usdaw would encourage all members of the Tesco Pension Scheme to participate in the consultation process and submit their views and feedback which will form part of the discussions.

Feedback should be done via the communication channels that Tesco have put in place, or via Usdaw’s Tesco Support Team at tesco.support@usdaw.org.uk

Consultative Group

The consultative group will consider:

- The rationale for the proposed changes and the business case being put forward
   by Tesco;

- What can be done to try and maintain the defined benefit pension scheme; and

- The defined contribution scheme, which Tesco are proposing to introduce.

Usdaw’s Pension Officer, Debra Blow will be briefing and supporting the Consultation Group throughout the process.

Usdaw has also appointed independent advisers who will provide an independent view of the company’s proposals.

We understand that everyone will be concerned about the proposed changes to the defined benefits scheme. However, it is important to remember, if you are an existing member of the Pension Scheme that the pension you have already built up will not be affected.

We will keep you updated through the official Usdaw and Tesco communication channels as discussions progress.

Best Regards,

Pauline Foulkes, National Officer
Joanne McGuinness, National Officer
« Last Edit: 20-04-15, 09:05AM by Loki »
Life is a monstrous demented gag. Madness is the emergency exit.
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Tenko

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Re: Pension Changes
« Reply #5 on: 20-04-15, 09:36AM »
Tesco will use the lack of response on the feedback channel that they will inevitably receive as their main reason to forge ahead with the changes.
You have to encourage as many responses as possible.I would suggest that a carefully thought out response could be posted here for people to use and send.
i have none

Loki

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Re: Pension Changes
« Reply #6 on: 20-04-15, 10:36AM »
Quote
- Formal pension consultation will start from Monday 20 April which all members
  of the pension scheme will have the opportunity to participate in.

Be that as it may, I expect Usdaw members to be balloted once the consultation process has come to an end.

Having said that, why are my teeth clenched, fingernails dug into the palms of my hands and despite the warm sunshine, a chill running down my spine?

After all, with Usdaw's deafening silence during the entirity of the restructure consultation process and its aftermath, one can only remain cynical regarding their so called involvement during this so called consultation regarding the annihilation of our defined benefit pension scheme. A pension scheme, I may add, of which attracted many of us to work for Tesco in the first place.

The mere fact that the word consultation is being used instead of negotiation has rung some rather large bells. After all, this is no small change!
Life is a monstrous demented gag. Madness is the emergency exit.
I will not reply to unsolicited PM's.

Mr Grumpy

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Re: Pension Changes
« Reply #7 on: 20-04-15, 10:59AM »
Over the years when other job opportinuties have arrived, our pension has been a big tipping point with me staying with the company.  I fear usdaw will not ballot the members over these sustantian changes, every other union in the uk would most definately be battoting. Yet again like loki.has said, consultation instead of negotiatons makes my heart sink

The Mrs

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Re: Pension Changes
« Reply #8 on: 20-04-15, 01:18PM »
Loki, you are right to clench your teeth. What is being introduced - and lets not kid ourselves, the decision has already been made and last weeks meetings were NOT meaningful consultations - is absolutely rubbish!

Lets have some figures shall we? Here goes:

At the moment some people in defined benefits (the older type) are paying 7% into the pension and Tesco pay 11% in.

On the new contribution scheme we pay 4 or 5% and Tesco pay up to 5%. That's a big drop from before.

To give you an idea of what this could mean if you are 40 and pay 5% for 21 years, retiring at 61 you will receive a pot of £53000.

Last week at the meeting reps were told that you would then be given this pot to go and buy yourself a pension with.

Basically it's nothing more than a savings account.

Tesco will be using your money to boost the business.

Death in service will be extremely reduced.

These are fundamental changes to all Terms and Conditions.

Those reps from DC's, Tesco Bank and the Call Centres were very unhappy.

I'm sorry to report that Store reps WERE SATISFIED with this.

DC's will definitely be balloting on this. I doubt Stores will be given this opportunity.

Loki

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Re: Pension Changes
« Reply #9 on: 20-04-15, 02:22PM »
With reference to the Store Reps involved....

[attachment deleted by admin]
Life is a monstrous demented gag. Madness is the emergency exit.
I will not reply to unsolicited PM's.

pike stupidboy!

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Re: Pension Changes
« Reply #10 on: 20-04-15, 03:04PM »
I worry like Loki that "consultation " was not used untill we were in the meeting hastily arranged this morning as the phrase used was " we have a briefing on pensions in a bit will you attend ?"

Yes and there we were all 35 of us waiting for the script to be read out when along came the phrase

" you are now entering into a 90 day consultation " WTF. ??  Oh how open and honest , really do you think the majority of the workforce understand enough to question and give feedback on a pension system ? Enough to make a difference I think not ! its a done deal .....

« Last Edit: 20-04-15, 03:05PM by pike stupidboy! »

gytha_ogg

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Re: Pension Changes
« Reply #11 on: 20-04-15, 04:55PM »
Could someone possibly explain, in simple terms, exactly what the changes will mean to the average bod?

Fair play

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Re: Pension Changes
« Reply #12 on: 20-04-15, 05:04PM »
You will get less money when you retire. noware near as good as the old pensions. Don't think I will bother to be in this new one

penguin

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Re: Pension Changes
« Reply #13 on: 20-04-15, 05:16PM »
Agree with all that is being said, this will happen no matter what the "consulation" is nothing more than the company going through the motions. Drastic Dave would be well advised to stop sending e-mails and putting videos on youtube saying how he values us all and wants to do his best for us. After today even the few people who normally fall for such c**p in our store could see what is really going on. One can only wonder what will be the next thing the company take from us as theres not a lot left is there.
Tesco - the moden day word for workhouse

burns2015

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Re: Pension Changes
« Reply #14 on: 20-04-15, 05:37PM »
All Dave rattles on about is for the good of our customers. So its f*** the Staff and let them suffer in there retirement just so they can knock 10p off a loaf of bread.

newgen10

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Re: Pension Changes
« Reply #15 on: 20-04-15, 05:58PM »
Its like U S D A W total c**p and a waste of space .
WHY DO WE BOTHER ANYMORE??

gomezz

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Re: Pension Changes
« Reply #16 on: 20-04-15, 07:35PM »
If you can afford the 5% contributions then treat the new scheme as a long term savings plan which has much a better return than normally available due to Tesco matching the contributions (up to 5%).
"The progress of the kart is more important than its direction"

stockrotateman

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Re: Pension Changes
« Reply #17 on: 20-04-15, 08:22PM »
Anybody read usdaw comments in the grocer, we would encourage every member of the pension scheme to to participate in the consultation and give there feedback we will try to overturn this decision by tosco.yeah right.

Loki

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Re: Pension Changes
« Reply #18 on: 20-04-15, 08:52PM »
So why do I get the feeling that Usdaw will cherry pick emails and twist the overall comments to save face?

This is not a minor change!

A ballot of members is what's needed at the end of the consultation to decide whether or not the proposals are accepted.

Grave concerns I have with the word "consultation" in place of negotiation.



Life is a monstrous demented gag. Madness is the emergency exit.
I will not reply to unsolicited PM's.

The Mrs

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Re: Pension Changes
« Reply #19 on: 20-04-15, 09:12PM »
If you can afford the 5% contributions then treat the new scheme as a long term savings plan which has much a better return than normally available due to Tesco matching the contributions (up to 5%).

But it's NOT a long term savings plan - it's a pension and I don't see why it should be thought of in any other way. That's a cop out and is exactly how Tesco will hope people see it.

So it's better than nothing, so that's ok then is it? Well to me it's not, because it's a whole bloody lot worse than what staff have now. This is the straw that will break the camels back. There is no longer any worthwhile reason to stay employed by Tesco.

Mr Lewis - you can say goodbye to the majority of your experienced staff.

And what will you do if the majority of the over 55's take retirement now and take the whole of their pension pot with them, as is now their right? If you think the £5Billion hole is bad now just wait and see how bad it can really get!

Fair play

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Re: Pension Changes
« Reply #20 on: 20-04-15, 09:18PM »
You are so write The Mrs I will be one of those staff after twenty years I've just about had enough

valleyboy

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Re: Pension Changes
« Reply #21 on: 20-04-15, 09:27PM »
And  who's called for a branch meeting to tell usdaw what to do?

Morris999

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Re: Pension Changes
« Reply #22 on: 20-04-15, 09:49PM »
Considering they changed the pension only 3 years ago to safe guard its future for all employees current and future this is a disgrace.

Worked mine out on there calculator earlier today and I'm going to be £4.5k a year worse off unless I pay in over £150 extra a month for the rest of my career due to my age!
Not impressed!

AlexM

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Re: Pension Changes
« Reply #23 on: 21-04-15, 12:03AM »
The pension scheme was one of the last things keeping experienced, loyal staff loyal to the company. This has pretty much washed that away.
The death in service award has gone from being worth 4x salary to being worth 5x your current pension contributions (ie knock a zero off the end of the figure).
 The actual pension will be worth 50% of what it was (according to my last benefits report & the new pension website).

There is now nothing left that makes it worth staying with the company. The wife & I are awaiting our letters & will then be going to see an independant financial advisor to see if we'd be better off paying into the Tosco scheme or a private one.

And as for consultation: it'll be waved through by Usdaw just like everything else.
In fact, I might cease my £10 a month to Usdaw & use it to save for my retirement instead.

burns2015

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Re: Pension Changes
« Reply #24 on: 21-04-15, 12:29AM »
Alex the death in service is currently 3 times your salary its actually changing to 4 times your salary.