48 / 181
40
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.