Prospect launches challenge to closure of pension scheme

Prospect launches challenge to closure of QinetiQ pension scheme

QinetiQ's case for closing its defined benefit pension scheme to future accrual is deeply flawed, Prospect said in response to the company's consulta­tion at the beginning of October.



The decision to close the scheme came only six months after QinetiQ derecognised Prospect and the other trade unions and terminated all collective bargaining arrangements as from April.

In spite of derecognition, Prospect has consulted widely with members on the proposal to close the DB scheme with effect from January 31, 2013. It has also formally responded to the company's consultation document, challenging the stated justification for closing the scheme.

National secretary, David Luxton, said Prospect had demonstrated the advantage of retaining independent trade unions by providing informed commentary on QinetiQ's proposals by the union's pensions officer, Neil Walsh.

"We also took into account many responses from individual members about the proposal.

"It is particularly disappointing that QinetiQ chose to ignore Prospect's informed view as we were closely involved in developing options in 2008 to sustain the DB pension scheme, including a risk-sharing agreement.

"There is no doubt that derecognition was linked to the company's intention to close the pension scheme without the inconvenience of a union challenge."

Prospect is prepared to engage with the company on any reasonable proposals that would retain DB provision. It has also highlighted practical proposals to mitigate the impact of scheme closure on members and their families.

Further membership meetings will be held in the new year.