{"id":523,"date":"2011-09-01T07:32:26","date_gmt":"2011-09-01T07:32:26","guid":{"rendered":""},"modified":"2011-09-01T07:32:26","modified_gmt":"2011-09-01T07:32:26","slug":"unison-actuarial-report-warns-of-%e2%80%98death-spiral%e2%80%99-to-pension-fund-from-mass-outsourcing-%e2%80%98one-barnet%e2%80%99-programme","status":"publish","type":"post","link":"https:\/\/www.barnetunison.me.uk\/wp\/2011\/09\/01\/unison-actuarial-report-warns-of-%e2%80%98death-spiral%e2%80%99-to-pension-fund-from-mass-outsourcing-%e2%80%98one-barnet%e2%80%99-programme\/","title":{"rendered":"UNISON actuarial report warns of \u2018death spiral\u2019 to Pension Fund from mass outsourcing \u2018One Barnet\u2019 programme"},"content":{"rendered":"

<\/a><\/a><\/a><\/a><\/a>Barnet UNISON Press Release:<\/o:p><\/span><\/b><\/p>\n

1 September 2011<\/o:p><\/span><\/b><\/p>\n

\u00a0<\/o:p><\/span><\/p>\n

FOR IMMEDIATE RELEASE <\/o:p><\/span><\/span><\/b><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/p>\n

UNISON actuarial report warns of \u2018death spiral\u2019 to Pension Fund from mass outsourcing \u2018One Barnet\u2019 programme.<\/span><\/b><\/o:p><\/span><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/p>\n

In wake of concerns about the Barnet Councils One Barnet mass outsourcing policy, UNISON commissioned a report on the \u2018Potential impact of reduced active membership of the London borough of Barnet Pension Fund\u2019<\/i><\/b><\/o:p><\/span><\/span><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/p>\n

The report makes scary reading for residents, staff and councillors: <\/o:p><\/span><\/span><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/p>\n

\u201cThe net cash flow position of the Fund could reduce from around \u00a322.9 million<\/b> (positive) in 2010 to between \u00a316.9 million<\/b> (positive) and \u00a325.0 million<\/b> (negative<\/b>) in 2012. Opt outs as low as 40% could result in a move from the Fund being cash positive to cash negative. <\/o:p><\/b><\/span><\/p>\n

\u00a0<\/o:p><\/span><\/b><\/p>\n

The Fund had a deficit (i.e. the difference between the assets and the liabilities) of \u00a3190 million<\/b> as at 31 March 2010, which was partly as a result of the wiping out of around \u00a327<\/b> million of the Fund\u2019s assets following the collapse of the Icelandic bank<\/b>. The Council is currently paying around \u00a310.7 million a year <\/b>to clear this deficit<\/o:p><\/b><\/span><\/p>\n

\u00a0<\/o:p><\/span><\/p>\n

The combined impact of the lower assets and higher liabilities will increase the deficit and could almost double the Council\u2019s deficit contributions to \u00a319.7 million a year <\/b>from 2013. This is ultimately a cost to the taxpayer<\/b>.<\/o:p><\/span><\/p>\n

\u00a0<\/o:p><\/span><\/p>\n

\u201cA significant shift in outsourcing policy<\/b> by Barnet Council set against a backdrop of mass opt-outs<\/b> expected as a result of Government\u2019s proposals to increase member contributions in the LGPS from April 2012, could lead to a significantly reduced active<\/b> membership of the Fund.\u201d<\/o:p><\/b><\/span><\/p>\n

\u00a0<\/o:p><\/span><\/b><\/p>\n

At tonight\u2019s Pension Fund Committee (Thursday<\/b> 1 September)<\/b>, <\/span><\/span>Agenda Item 9<\/span><\/span><\/a> reports the Council have \u00a37 million<\/b> less<\/span> than they thought they had. <\/span><\/o:p><\/span><\/span><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/p>\n

\u201cThe overall effect of the adjustments listed below is to decrease Fund assets by \u00a37.0m (Agenda 9) <\/o:p><\/span><\/b><\/p>\n

\u00a0<\/o:p><\/span><\/p>\n

On 22 June 2011 <\/b>Pension Fund Committee were informed Barnet Homes had not noticed the Bond for Connaught\u2019s Plc had <\/span><\/span>lapsed<\/span><\/span><\/a>. The consequence is an unplanned \u00a31.492 million<\/b> bill to Barnet council taxpayers<\/b><\/o:p><\/span><\/span><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/p>\n

The \u2018One Barnet programme\u2019<\/b> is not a new political ideology, it is a rehashed version of the \u2018contracting out madness\u2019<\/b> of the 1980\u2019s which damaged public services and destroyed the lives of the a workforce abandoned to unscrupulous employers.<\/o:p><\/b><\/span><\/span><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/b><\/p>\n

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 <\/span><\/span>*<\/span><\/b>TUPE transferred out of the council to Fremantle Trust and Housing 21, there are very few TUPED staff still contributing to the Fund. <\/o:p><\/span><\/span><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/p>\n

Three years<\/span><\/span><\/a> 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<\/i><\/b> June 22<\/b> 2011<\/b> a report entitled \u2018<\/span><\/span>One Barnet\u2019 highlight<\/span><\/span><\/a> report was produced. If you scroll down through the document, for the first time you see the Council acknowledges there is a risk. <\/o:p><\/span><\/span><\/p>\n

\u00a0<\/o:p><\/span><\/b><\/p>\n

\u201cRisk Number CP0010<\/b> <\/o:p><\/span><\/p>\n

Risk<\/span><\/b>: The negative affect on the Pension Fund due to loss of payees<\/o:p><\/span><\/p>\n

Consequences of risk:<\/span><\/b> Potentially reduced pension fund thus raising the necessity to find finances from elsewhere\u201d<\/o:p><\/span><\/p>\n

\u00a0<\/o:p><\/span><\/p>\n

The Council is playing high stake risks<\/b> with our member\u2019s pensions and council taxpayers future payments. <\/o:p><\/span><\/span><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/p>\n

The Council need to recognise that \u2018political dogma\u2019<\/i><\/b> also known as One Barnet programme<\/b> cannot continue to expose residents, services and staff to this high risk strategy and expect them to pick up<\/b> the bill. <\/o:p><\/span><\/span><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/p>\n

Barnet UNISON is asking for the One Barnet programme to be put on hold. <\/o:p><\/span><\/span><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/p>\n

On Tuesday 13 September<\/b> up to <\/span><\/span>400 UNISON<\/span><\/span><\/a> 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 <\/span><\/span>Barnet Independence<\/span><\/span><\/a> Day.<\/o:p><\/span><\/span><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/p>\n

* <\/span><\/b>TUPE = Transfer of Undertakings (Protection of Employment) Regulations <\/o:p><\/span><\/span><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/p>\n

End. <\/o:p><\/span><\/span><\/b><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/p>\n

Contact<\/span><\/b>: John Burgess Barnet UNISON on 07738389569 <\/b>or email: <\/span><\/span>john.burgess@barnetunison.org.uk<\/span><\/span><\/a><\/o:p><\/span><\/p>\n

\u00a0<\/span><\/o:p><\/span><\/p>\n

Useful Links <\/o:p><\/span><\/b><\/p>\n

\u00a0<\/o:p><\/span><\/p>\n

1. \u2018The potential impact of reduced active membership of the London borough of Barnet Pension Fund,\u2019<\/span><\/span><\/b> <\/span><\/b>(First Actuarial LLP)<\/o:p><\/span><\/span><\/b><\/p>\n

To read summary click on link below <\/o:p><\/span><\/span><\/b><\/p>\n

http:\/\/www.barnetunison.me.uk\/sites\/default\/files\/UNISON%20Barnett%20Council.31%20August%202011.SUMMARY.pdf<\/span><\/span><\/a><\/o:p><\/span><\/p>\n

<\/span><\/o:p><\/span><\/p>\n

To read full report click on link below <\/o:p><\/span><\/span><\/b><\/p>\n

http:\/\/www.barnetunison.me.uk\/sites\/default\/files\/UNISON%20Barnet%20Council%2031%20August%202011FINAL.pdf<\/span><\/span><\/a><\/o:p><\/span><\/p>\n

<\/span><\/strong><\/o:p><\/span><\/p>\n

<\/span><\/o:p><\/span><\/b><\/p>\n

2. Life not so easy for council facing \u00a31.5m outsource bill<\/o:p><\/span><\/span><\/b><\/p>\n

http:\/\/www.localgov.co.uk\/index.cfm?method=news.detail&id=100493<\/span><\/span><\/a><\/o:p><\/span><\/p>\n

<\/span><\/strong><\/o:p><\/span><\/p>\n

3. Barnet Council Pension Fund Committee papers 22 June 2011 <\/o:p><\/span><\/span><\/b><\/p>\n

http:\/\/committeepapers.barnet.gov.uk\/democracy\/meetings\/meetingdetail.asp?MeetingID=6782<\/span><\/span><\/a><\/o:p><\/span><\/p>\n

<\/span><\/o:p><\/span><\/p>\n

4. Barnet Council Pension Fund Committee papers 1 September 2011 <\/o:p><\/span><\/span><\/b><\/p>\n

http:\/\/committeepapers.barnet.gov.uk\/democracy\/meetings\/meetingdetail.asp?meetingID=6786<\/span><\/span><\/a><\/o:p><\/span><\/p>\n

<\/span><\/strong><\/o:p><\/span><\/p>\n

5. The \u2018shrinking by outsourcing\u2019 models \u2013 implications for staff<\/o:p><\/span><\/span><\/b><\/p>\n

http:\/\/www.barnetunison.me.uk\/sites\/default\/files\/Barnet_Briefing%20No%206.pdf<\/span><\/span><\/a><\/o:p><\/span><\/p>\n

<\/span><\/o:p><\/span><\/p>\n

6. Directors Cut for Barnet Independence Day<\/o:p><\/span><\/span><\/b><\/p>\n

http:\/\/www.youtube.com\/watch?v=3826zTEyhoI<\/span><\/span><\/a><\/o:p><\/span><\/p>\n

<\/span><\/strong><\/o:p><\/span><\/p>\n

7. Barnet UNISON One Barnet Cartoon Channel <\/o:p><\/span><\/span><\/b><\/p>\n

http:\/\/www.barnetunison.me.uk\/?q=node\/664<\/span><\/span><\/b><\/a><\/o:p><\/span><\/b><\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Barnet UNISON Press Release: 1 September 2011 \u00a0 FOR IMMEDIATE RELEASE \u00a0 UNISON actuarial report warns of \u2018death spiral\u2019 to Pension Fund from mass outsourcing \u2018One Barnet\u2019 programme. \u00a0 In wake of concerns about the Barnet Councils One Barnet mass outsourcing policy, UNISON commissioned a report on the \u2018Potential impact of reduced active membership of the London borough of Barnet<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-523","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.barnetunison.me.uk\/wp\/wp-json\/wp\/v2\/posts\/523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.barnetunison.me.uk\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.barnetunison.me.uk\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.barnetunison.me.uk\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.barnetunison.me.uk\/wp\/wp-json\/wp\/v2\/comments?post=523"}],"version-history":[{"count":0,"href":"https:\/\/www.barnetunison.me.uk\/wp\/wp-json\/wp\/v2\/posts\/523\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.barnetunison.me.uk\/wp\/wp-json\/wp\/v2\/media?parent=523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.barnetunison.me.uk\/wp\/wp-json\/wp\/v2\/categories?post=523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.barnetunison.me.uk\/wp\/wp-json\/wp\/v2\/tags?post=523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}