EC Papers September 2017

EC Minutes July 19 2017

that, and said his role so far as the Executive Committee was concerned was to impart information but not to give advice.

Possible amalgamation of GFTU defined benefit and defined contribution schemes under one trust.

Mr Walker's briefing was considered in detail and he further gave background to the issue and the current legislation.

Having considered all of the factors carefully it was the view of the Executive that the defined contribution pension arrangements and the final salary scheme should not be brought together.

Trustee composition on the defined benefit pension scheme.

Mr Walker's briefing was considered in detail and he further gave background to the issues involved and the current position.

The scheme is very mature. The GFTU Section of the scheme has a relatively large number of pensioner members, a smaller number of deferred members but only one GFTU active, who happens to be the General Secretary and a scheme Trustee. The GFTU Section is effectively closed to new members. It was noted that the option to enter the DB scheme was a contractual matter remaining open to any future GFTU General Secretary. The PCS Section (formerly the AMO Section) has four active members who select one Trustee from their number but there is no PCS employer-nominated trustee. It was noted that there were currently six Trustees, with three Member Nominated Trustees (MNTs), one selected by the GFTU active members, one selected by the PCS active members and one selected by the GFTU pensioners. The pensioner-selected Trustee’s period of office had elapsed two years ago, but he remained a Trustee. There is one vacancy because the General Secretary is a Trustee ex officio and also the only possible GFTU active member MNT. Mr Walker explained that the process for selecting MNTs must be devised by the Trustees as a matter of law. The selection process for the PCS member-nominated Trustee gave no cause for concern. Mr Walker outlined the attempts by the GFTU as the administrator of the scheme to give effect to an election process for the pensioner Trustee devised by the Trustees that would find favour with the current GFTU pensioner representative. The decision of the Trustees subsequently to invite all GFTU pensioners to propose an system for electing acceptable to the Trustees had not been responded to. The General Secretary explained that letters had been sent to all GFTU pensioners in December 2016 and again April 2016 and the current pensioner MNT had been given additional opportunities to make submissions but these had not been forthcoming. The Executive Committee noted that the current arrangement whereby the General Secretary is both a Trustee ex officio and also the only GFTU active member and therefore the only possible GFTU active member-selected trustee is untenable. They also discussed the undesirability of having any ex officio status appointments to a pensions scheme. The Executive Committee discussed the situation in detail, and expressed surprise that the GFTU pensioners appeared to be unwilling or unable to put forward a pensioner- selected Trustee but noted that having a Trustee seat reserved for pensioners is relatively uncommon. It noted that it is also uncommon, except for trade union sponsored schemes, for an equal number of employer- and member-selected trustees. It recognised the

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