Prospect calls for an end to unfair ‘two-tier’ pension arrangements across the Nuclear Decommissioning Authority

A motion highlighting an unfair disparity in ‘two-tier’ pension arrangements across the Nuclear Decommissioning Authority group of companies was successfully carried at National Conference.

Sellafield’s Gary Blinco moved the motion on behalf of Dounreay branch

The motion was brought by Dounreay branch but was moved at National Conference on their behalf by Gary Blinco (Sellafield) who said:

“This motion is about Defined Benefit pension provision for new joiners and Defined Contribution pension scheme members. Conference notes that employees are subjected to operating within the constraints of a Civil Service pay remit, limiting the scope for meaningful pay progression.

“The long-term financial security of our members is increasingly dependent on robust pension provision, particularly as cost-of-living and retirement pressures rise.”

He pointed out that new joiners and those currently in the Defined Contribution pension scheme “face significantly worse retirement outcomes compared to those with Defined Benefit arrangements.”

Audrey Uppington, speaking in support of the motion on behalf of the NEC, said:

“There is an unfair, two-tier system in every company in the NDA estate. Long-standing employees have access to a DB scheme, but new entrants — since 2006, actually, so they’re not that new — have not been able to enter the DB scheme and are only allowed access to the DC scheme.”

She added that when the DC schemes were first set up, their contributions were designed to match the contributions into the DB schemes, but the NDA had not upheld this commitment. Moreover, the NDA had ignored Prospect requests to review the DC scheme contribution rates.

Audrey Uppington

“This is further exacerbated because these companies are now subject to public sector constraints, as Gary mentioned, and are now bound by the Civil Service pay remit, which is much more restrictive. Yet, they are not allowed access to the public DB schemes,” Audrey told delegates.

“This two-tier arrangement is fundamentally unfair to the employees. When it suits the government, these workers are treated as public servants, and when it doesn’t — such as with their pension arrangements — they are treated to their detriment.”

No one spoke against the motion, which was carried by delegates 307 votes to 12.

As a result, Prospect’s National Executive Committee will now launch a national campaign calling for the establishment of a Defined Benefit pension scheme for:

• All new joiners to site licence companies within the NDA Group and other Civil Service Arms Length Bodies;
• All current members enrolled in a Defined Contribution scheme who wish to transfer;
• To engage directly with the NDA Group and the Government to negotiate and secure agreement on implementing access to a defined benefit pension scheme for all employees subject to the constraints of the Civil Service Pay Remit.