superann2u2

Some Random Thoughts

1. The ESB and the Group of Unions have chosen to cut back the pensioners’ benefits to the minimum – to what they perceive to be the letter of the law within the Rules and Regulations of the Scheme. They have been moving in this direction for some time now.
2. Pensioners who retired back in the 90’s and earlier are not eligible to benefit from the Shares Deal. 40+ years of service and commitment to the company are apparently, of no consequence!
3. Since 2005 productivity deals have been paid without a superannuation element. If you retired before this change in practice and compare your latest P60 with your colleague on the same grade and still at work, you will find that your pension is 16% less than 50% of your colleague’s money. You would previously have received the 50% or thereabouts! So, the attack on pensioners’ benefits well predates the 2008 stock market debacle. It seems to have been a policy objective for some time to curb the cost of pensions.
4. The proposals now being approved contain no review mechanism. Pensions will only be ratcheted down from now on. A mechanism has now been developed to make detrimental changes to pensioners’ benefits which can be operated again and again whenever ESB and the GoU find it opportune to do so. Pensioners will be ignored or palmed off with a half truth. Serving staff watch out!
5. The link to current staff income was a big selling point in all the ESB documentation covering terms and conditions of employment for decades. Career and retirement decisions were made in the light of this expectation With a prospect now of virtually no adjustment for inflation there may well be much anxiety and worry for pensioners with particular family commitments.
6. Before any adjustment for inflation is considered an ESB-appointed Actuary will carry out a ‘solvency test’. Depending on the outcome of this arcane exercise you may receive some adjustment. There is no provision for arbitration and little in the way of transparency about this whole exercise. It’s little consolation but an Actuary retained by the Retired Staff Association is of the opinion that payments to compensate for inflation are unlikely to arise on foot of this new system. The cold reality is that economists are saying that the only real way for governments to address the current financial crisis is to inflate economies- this underlines how perilous our situation as pensioners is.
7. The sad reality is that ESB is not willing to provide funding to make up sufficient to cover inflation not to mention the traditional link with the salaries of current staff. They claim that they are caught in the position of needing to borrow money to fund diversification and to generate additional revenue to offset diminishing revenues arising from competition. In effect, the pensioners must carry some of the can. There is, unfortunately, no provision for better days!
8. There is a proposal to change the investment policy for the Scheme to reduce the risk associated with higher yielding equity investment. Clearly, the policy in recent years left much to be desired. The portfolio seems to have included too many frothy stocks likely to wither in a breeze not to mention a storm. There appears to have been little scope to sell out as the storm developed over the months in 2008. Unfortunately, it falls to the defenceless pensioners to pick up the tab!
9. ESB appear to have coerced serving staff into accepting a much diminished pension scheme. At least they had the opportunity through their unions to participate in the process. Pensioners were fobbed off with a series of propaganda meetings with ESB representatives. Now, at the eleventh hour, having been lead to believe that a process of consultation would take place, The Retired Staff Association is again being marginalised and no meaningful engagement will take place.

10.  In replying to the recent letter from ESB we would urge you to demand that The Retired Staff Association would represent your interests and must  be     consulted to put forward proposals to deal with the legitimate fears and concerns of pensioners.

11.  Some pensioners find it very difficult to accept that we are being treated this way. That’s understandable. Time is now short. Engage with your colleagues and express your position through the Association and by answering the letter to the Acting Director HR.

If you wish to comment or to add your observations to the above, press the ‘comment’ button below and send on your input.