PTSB Update: Mandate rejects allegations over pensions wind up
Friday 12 April 2013Mandate Trade Union says it wants to clarify statements made by PTSB HR Director Mr Tony Hession to our members today.
Lorraine O’Brien, Divisional Organiser for Mandate said, “Our Union would like to make it abundantly clear that we were not involved in any discussions to wind up the Defined Benefit (DB) Scheme despite the company’s statement to the contrary.”
Ms O’Brien explained that Mr Hession sent a notice to all staff members at PTSB stating “we met with the Trade Union representative bodies yesterday at the Labour Relations Commission to work through the options… discussed were… Winding Up the Defined Benefit Schemes.”
“This statement from Mr Hession is misleading,” said Ms O’Brien.
“While it is true Mr.Tony Hession met with Mandate representatives at the LRC yesterday, the Union did not participate in any proposal to wind up the scheme.”
Ms O’Brien explained that during yesterday’s meeting, Mr Hession said: “The TSB Bank pension scheme is no longer viable and is not salvageable. On that basis the Bank cannot continue to make contributions to the pension scheme.”
When Ms O’Brien asked Mr. Hession what the effect of the Bank’s decision to cease contributions would have on the scheme, he stated that “the Trustees may be left with no other option but to wind up the schemes.” He added that “we must face up to this”.
Mr Hession also stated that the wind up of the scheme would fix the IAS 19 accounting standard and the request from Minister Noonan for a 6-10 % remuneration reduction.
Ms O’Brien concluded by saying, “I can categorically state that this Union, its representatives or indeed any other Union in attendance at the LRC did not and have never entered into any negotiation/discussion with the Bank on the windup of the pension scheme.”
