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GoAnimate.com: Obama sends mesage of support to Barnet UNISON by Barnet UNISON
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GoAnimate.com: Obama & Cameron and the stolen banner by Barnet UNISON
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1 September 2011
FOR IMMEDIATE RELEASE
UNISON actuarial report warns of ‘death spiral’ to Pension Fund from mass outsourcing ‘One Barnet’ programme.
In wake of concerns about the Barnet Councils One Barnet mass outsourcing policy, UNISON commissioned a report on the ‘Potential impact of reduced active membership of the London borough of Barnet Pension Fund’
The report makes scary reading for residents, staff and councillors:
“The net cash flow position of the Fund could reduce from around £22.9 million (positive) in 2010 to between £16.9 million (positive) and £25.0 million (negative) in 2012. Opt outs as low as 40% could result in a move from the Fund being cash positive to cash negative.
The Fund had a deficit (i.e. the difference between the assets and the liabilities) of £190 million as at 31 March 2010, which was partly as a result of the wiping out of around £27 million of the Fund’s assets following the collapse of the Icelandic bank. The Council is currently paying around £10.7 million a year to clear this deficit
The combined impact of the lower assets and higher liabilities will increase the deficit and could almost double the Council’s deficit contributions to £19.7 million a year from 2013. This is ultimately a cost to the taxpayer.
“A significant shift in outsourcing policy by Barnet Council set against a backdrop of mass opt-outs expected as a result of Government’s proposals to increase member contributions in the LGPS from April 2012, could lead to a significantly reduced active membership of the Fund.”
At tonight’s Pension Fund Committee (Thursday 1 September), Agenda Item 9 reports the Council have £7 million less than they thought they had.
“The overall effect of the adjustments listed below is to decrease Fund assets by £7.0m (Agenda 9)
On 22 June 2011 Pension Fund Committee were informed Barnet Homes had not noticed the Bond for Connaught’s Plc had lapsed. The consequence is an unplanned £1.492 million bill to Barnet council taxpayers
The ‘One Barnet programme’ is not a new political ideology, it is a rehashed version of the ‘contracting out madness’ of the 1980’s which damaged public services and destroyed the lives of the a workforce abandoned to unscrupulous employers.
We have already had a warning of what could happen to our Pensions with outsourcing. Between 2000 and 2004 hundreds of council care workers were *TUPE transferred out of the council to Fremantle Trust and Housing 21, there are very few TUPED staff still contributing to the Fund.
Three years ago UNISON raised the risk to the Pension Fund, however until now the Council have fobbed off our concerns. That all changed at the Budget and Performance Overview and Scrutiny Committee Meeting June 22 2011 a report entitled ‘One Barnet’ highlight report was produced. If you scroll down through the document, for the first time you see the Council acknowledges there is a risk.
“Risk Number CP0010
Risk: The negative affect on the Pension Fund due to loss of payees
Consequences of risk: Potentially reduced pension fund thus raising the necessity to find finances from elsewhere”
The Council is playing high stake risks with our member’s pensions and council taxpayers future payments.
The Council need to recognise that ‘political dogma’ also known as One Barnet programme cannot continue to expose residents, services and staff to this high risk strategy and expect them to pick up the bill.
Barnet UNISON is asking for the One Barnet programme to be put on hold.
On Tuesday 13 September up to 400 UNISON members will be taking strike action as a result of a Trades Dispute UNISON has with the One Barnet programme. They have dubbed the action Barnet Independence Day.
* TUPE = Transfer of Undertakings (Protection of Employment) Regulations
End.
Contact: John Burgess Barnet UNISON on 07738389569 or email: john.burgess@barnetunison.org.uk
Useful Links
1. ‘The potential impact of reduced active membership of the London borough of Barnet Pension Fund,’ (First Actuarial LLP)
To read summary click on link below
To read full report click on link below
2. Life not so easy for council facing £1.5m outsource bill
http://www.localgov.co.uk/index.cfm?method=news.detail&id=100493
3. Barnet Council Pension Fund Committee papers 22 June 2011
http://committeepapers.barnet.gov.uk/democracy/meetings/meetingdetail.asp?MeetingID=6782
4. Barnet Council Pension Fund Committee papers 1 September 2011
http://committeepapers.barnet.gov.uk/democracy/meetings/meetingdetail.asp?meetingID=6786
5. The ‘shrinking by outsourcing’ models – implications for staff
http://www.barnetunison.me.uk/sites/default/files/Barnet_Briefing%20No%206.pdf
6. Directors Cut for Barnet Independence Day
http://www.youtube.com/watch?v=3826zTEyhoI
7. Barnet UNISON One Barnet Cartoon Channel
http://www.barnetunison.me.uk/?q=node/664
Dear Councillors
On 21 June 2011, I wrote to the deputy chief executive in his role as section 151 officer expressing concern about the impact of the One Barnet programme on the future viability of the scheme. In those email exchanges I noted the following risk identified in the One Barnet Highlights report which went to Budget and Performance Overview and Scrutiny Committee 21 June 2011.
Risk Number CP0010 : The negative affect on the Pension Fund due to loss of payees
CAUSE: Use of GAD over ABS and abolition of workforce code of practice
Consequences of risk: Potentially reduced pension fund thus raising the necessity to find finances from elsewhere
Mitigation Action
Meeting with Actuaries to greater understand the effect Meeting was held with the actuaries (Barnett Waddingham) to discuss the implications of the transfer of employees with either Admitted Body Status (ABS) or use of a Government Actuaries Department (GAD) Passport. Early discussions were held on the potential impact on both employee’s pensions and the affect on the Pension Fund. Key points discussed included the current Government consultation on the Fair Deal Policy: treatment of pensions on compulsory transfer of staff from the public sector, current trends by providers is to opt for ABS over GAD due to cost, the detail of ABS including the provision of a bond, related risks and open and closed schemes.
A paper will be going to the September Pensions Fund Committee on the position of the procurement Projects within the One Barnet Project, requesting approval for an ‘in principle’ decision on the corporate approach to managing the pension implications. Individual projects will still need to present their in individual specifications to the Pension Committee.
Whilst we have had a presentation (which was helpful) and some discussions about the proposals for staff being transferred out of the council, we have not had any detailed information with regards the impact of the mass outsourcing on the future viability of the scheme.
In absence of a response to our concerns UNISON commissioned First Actuarial LLP to produce a report.
I am now enclosing our report and a summary of the report to all members of the Pension Fund Committee.
Because of the seriousness of the issues raised by our report I am asking for a extraordinary Pension Fund Committee to be convened. I am able to confirm that our actuary is willing and able to address the Pension Fund Committee once we reach an agreement about the date of the meeting. I do need to make members of the Pension Fund Committee aware that UNISON identified this as a serious risk three years ago. It is unfortunate it has taken the Council until this late stage to recognise that is indeed the case.
I understand that Barnett Waddingham have produced a report modelling the impact of outsourcing I am formally requesting a copy of this report.
I welcome member’s comments and questions, I will endeavour to respond to them in due course. I will be attending the Pension Fund Committee as the union observer tomorrow.
Best wishes
John Burgess
Interim Branch Secretary.
Barnet UNISON
www.barnetunison.me.uk
Barnet UNISON “Watch it & Share it”
Standing up for staff and public services
Not for onward transmission in whole or part without permission
In wake of concerns about the Barnet Councils One Barnet mass outsourcing policy, UNISON commissioned a report on the ‘Potential impact of reduced active membership of the London borough of Barnet Pension Fund’
The report makes scary reading for residents, staff and councillors:
“The net cash flow position of the Fund could reduce from around £22.9 million (positive) in 2010 to between £16.9 million (positive) and £25.0 million (negative) in 2012. Opt outs as low as 40% could result in a move from the Fund being cash positive to cash negative.
The Fund had a deficit (i.e. the difference between the assets and the liabilities) of £190 million as at 31 March 2010, which was partly as a result of the wiping out of around £27 million of the Fund’s assets following the collapse of the Icelandic bank. The Council is currently paying around £10.7 million a year to clear this deficit
The combined impact of the lower assets and higher liabilities will increase the deficit and could almost double the Council’s deficit contributions to £19.7 million a year from 2013. This is ultimately a cost to the taxpayer.
“A significant shift in outsourcing policy by Barnet Council set against a backdrop of mass opt-outs expected as a result of Government’s proposals to increase member contributions in the LGPS from April 2012, could lead to a significantly reduced active membership of the Fund.”
On Thursday 1 September, Agenda Item 9 Pension Fund Committee are informed they have £7 million less than they thought they had
“The overall effect of the adjustments listed below is to decrease Fund assets by £7.0m (Agenda 9)
On 22 June 2011 Pension Fund Committee were informed Barnet Homes had not noticed the Bond for Connaught’s Plc had lapsed. The consequence is an unplanned £1.492 million bill to Barnet council taxpayers
To view summary click here
To view Full report click here
To view previous episodes click on the following links
President Obama secret One Barnet dossier
http://www.youtube.com/watch?v=XKBPUBSFGZI
Obama, Libya and One Barnet
http://goanimate.com/movie/0D6V-lI0zke4?utm_source=linkshare&uid=0HgcHzZR9Qi4
Bill & Ben talk about Barnet Independence Day
http://goanimate.com/movie/0_CvGcbymUuY/1
President Obama takes an interest in Barnet
http://goanimate.com/movie/0L0r7UMzbJ6c/1
To view click here