Merchant Navy Officers

[mnoadmin]

Salaams,
since the last board disappeared two interseting letters came in. re pensions which I post for your consideration.
Letter One.
Dear Fred
I was thinking about the MNOPF the other day and the results of the last Actuarial valuation and it struck me that Pensioners in the 'Old Section' are not getting a good deal from the Trustees. I know that any increase in Pension payments are purely discretional but when you look at the facts the Board of Trustees have not 'been acting in the best interests of the Members' which is what they are supposed to do. The facts are:-
April 1997 - A discretionary Pension increase sanctioned by the Trustees
1999 - Actuarial valuation shows 'Old Section' in surplus by £20m.
2000- " " " " " " " " £140m
April 2002 - A discretionary Pension increase of 3% sanctioned by Trustees.
2003 - Actuarial valuation shows 'Old Section' in surplus by £167m


It is now almost March 2004, so in the last 7 years we have had one miserly 3% increase yet the fund surplus has grown to £167m. According to the Trustees a 1% increase in Pensions payable equates to a cost of £12m approx. So If we had received say a 5% increase in 2002 the surplus would in 2003 have still been £140. The Trustees take so long to make decisions you could well be 6ft. under by the time they decide to make an increase. Surely the Fund does not need to keep such a large surplus. Why not put it to better use by increasing Members Pensions, it is after all their money is it not? I am expecting a minimum of a 5% increase in Pension and even that will only reduce the surplus to £107m. So it would be quite possible to give a 10% increase and still leave £47m in the kitty.

I have written to Peter McEwen the Chairman of the Board of Trustees asking him when the Board intends to meet, if it already has not, to discuss an increase in Pension for 'Old Section' members and the amount of increase they are considering. Can I ask you through the M.N.Officers website to publish this appalling situation i.e a one off 3% increase in 7 years yet the surplus has increased from £20m in 1999 to £167m in 2003 an increase of over 700% !!! Urge all Members of the 'Old Section' in receipt of a pension to write to Peter McEwen c/o Numast (you know the address) and tell them to ask him what are the Trustees doing about the situation. We want a substantial increase in Pension now. What do you think? Also tell them to attend the pension Forums held by Numast so that they can express their feelings in person. Next Forum at Leytonstone, London on 27th April 2004. Unles we pressurise these people they will still be thinking about it next year. It took them 2 years to decide to make the last increase.