EC Meeting March 2017

The GFTU Pension Scheme

1

This has been an extremely busy two years for the Trustees.

2 Due to its merger with IndustriALL and move of a UK based central office location, one of the employers sections of the scheme, the International Garment and Leather Workers Federation had to be wound up by virtue of Section 75 regulations and passed to the Pension Protection Fund. Three years of complex work on this transfer were completed in 2016.

3 The pension scheme remains with two sections, the GFTU and the PCS (former AMO) sections.

4 The Executive Committee of the GFTU having considered all aspects of the finances as carefully as it could, along with the Trustees, agreed to close the scheme to future accrual. 5 The Executive Committee was also keen to ensure that pensioners and actives in the two sections were able to propose their own method of election of Trustees and this process was eventually commenced.

6

Revised, consolidated handbooks and deed for the scheme were agreed.

7 The triennial valuation was conducted over this period and a satisfactory outcome which identified a reduced deficit in the GFTU Section and a shorter repayment period was agreed.

8 New administrative systems were introduced and communication with pensioners nad relevant updating work were undertaken.

9 Tenders for actuarial assistance were conducted and Mercer and CO were reappointed.

10

Tenders for accountancy work with the scheme were undertaken and Sturgess Hutchinson were appointed.

11 Tenders were undertaken for financial investments and following considerable analysis and discussion and a commissioned report, Legal and General Investment Managers were reappointed with a differently constructed portfolio investments. Performance on investments has been strong.

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