| Letter Addressed to the National Association of Pension Funds: Your name appeared in the Daily Telegraph following the recent Budget and I wondered if you could possibly address concerns I have over my Pension Fund? I belong to the Merchant Navy Officers Pension Fund and, whilst I understand you cannot comment in anyway with regards the Fund itself, perhaps you could comment on whether or not it's performance puts it in the top echelon of Funds as it claims. Also, is it true that the only Funds that are currently paying 'cost of living' increases to their pensioners are State run? And finally a question for your association, as a collective group are you doing anything to pressure the Chancellor of the Exchequer into changing his mind over his destructive exploitation of our and other Pension Funds. Yours faithfully, F.J.Waddington Reply Recieved: From: David Astley [mailto:xxxxxx@xxx.xxx] Sent: Tuesday, April 11, 2000 2:26 PM To: 'xxx@merchantnavyofficers.com' Subject: Fund Performance I refer to your email of 26 March and apologise for the delay in replying. We do not hold any records or statistics of the performance of individual pension funds so therefore it would not be appropriate for me to comment on the claims of the Merchant Navy Officers Pension Fund. I do not believe that it would be true to say that the only funds paying "cost of living" increases are State run. Different funds, whether public sector or private sector will have different scheme rules in relation to increases to pensions in payment. It is a requirement however that pensions in respect of service after 6 April 1997 must be increased in the course of payment by a minimum of "limited price indexation" (LPI). LPI means an increase in line with the increase in the RPI subject to a maximum increase of 5% pac. As an Association, we continue to lobby the Government, not just the Chancellor, to try to ensure that the environment within which occupational pension and benefit arrangements operate is one in which they can flourish. David C Astley Technical Manager |