Pensions Update December 2023

Following on from our communication in July, we would like to provide an update on Pensions (which remains one of our key Reward Priorities) . For accessible text, please scroll past the newsletter images.

DEFICIT REDUCTION 

LBG has substantially agreed the triennial valuation as at 31 December 2022 for the Group’s three main defined benefit pension schemes with the Trustee. After allowing for the fixed contribution of £800 million made in the first half of 2023, there is a residual aggregate deficit of £250 million. LBG has agreed to pay off this deficit by the end of March 2024 . This should provide some assurance to members about the health of their schemes.

COLLEAGUE EDUCATION

LBG is receptive to the need for colleague education to raise and support awareness of financial and pensions related issues which will support colleagues in making informed investment decisions. An example of the commitment to this is the Pensions Q & A Session that took place during Talk Money Week. A recording of the Q & A Session can be accessed by searching the intranet for “Talk Money Week Pensions Q&A Session 2023”. A series of awareness videos have also been uploaded to a new Pension Video Hub.

SINGLE SIGN ON ACCESS

After a lengthy period of maintenance, SSO has now been restored so that scheme members are able to access their pensions and benefit statements with ease.

DEATH IN SERVICE BENEFIT

It has now been confirmed that Death in Service benefits are protected during the transfer period between Defined Benefit schemes and Your Tomorrow.

STATE PENSION CLAWBACK

WE WILL ASK WHETHER THE REDUCTION APPLIED TO SOME DEFINED BENEFIT SCHEMES RELATING TO STATE PENSION PAYMENTS CAN BE DISAPPLIED.

WHAT IS UNITE DOING?

Unite recognises that the above steps represent positive progress but remain aware that there are significant colleague concerns that we have raised but which remain to be addressed. We are mindful that these concerns have been outstanding for some time, in the circumstances we are seeking further, ongoing dialogue and engagement with the Pensions Team and we aim to be able to update you further in Q1 2024.

We will continue to pursue dialogue on the outstanding points that are summarised below, and which include the cap on pensionable salary for DB scheme members and an additional item of colleague concern relating to state pension clawback. Going forward Unite will seek to engage positively with LBG to advocate in favour of the legitimately held retirement expectations of hardworking and loyal colleagues.

Unite continues to press LBG on these issues. For comments & questions email LBG.Support@

unitetheunion.org - you can help us realise our collective priorities by getting involved and adding your support to the campaign for fair treatment of pension fund members.