Consultation on nuclear pension reform

Consultation on nuclear pension reform

Government has launched a public consultation on its approach to reforming two final salary pension schemes within the Nuclear Decommissioning Authority’s group.

BNFL Sellafield site

More than 10,000 members of the final salary section of the Combined Nuclear Pension Plan (CNPP) and the Magnox Electric Group of the Electricity Supply Pension Scheme (MEG-ESPS) are directly affected by the consultation.

In early 2017, the NDA initially consulted on two options for reforming these pension schemes.

The first option for reform was for a CARE scheme with pension age increased to State Pension Age.

The second option for reform would retain a final salary pension scheme but with a cap on future pensionable pay increases.

Following discussions with Prospect and the other recognised trade unions, a third option, for a CARE scheme but retaining members’ existing pension age, was negotiated. This improved option was subsequently agreed by Prospect members in a ballot last year.

The current consultation is about how the agreed reforms will be implemented and it will run to 5 July.

One of the key issues covered by the consultation is how to implement changes to these schemes while retaining statutory protection against any further detrimental changes for the thousands of members affected.

Sue Ferns, Prospect’s senior deputy general secretary, said: “Prospect fought hard to secure an improved option for reform that allowed the members of these schemes to retain the same pension age.

"A key part of the agreement was ensuring that legal protections would be immediately put back in place to prevent further detrimental changes being imposed in the future.

"We will submit a full response to the consultation on behalf of Prospect members to ensure that the outcome of the consultation is in line with what members voted for last year.”

The consultation is available here.

Prospect members who have queries about the issues covered by the consultation can contact their local rep or email the Prospect pension team.