A message from Rod Scott (Pensioner Representative on the IPMC)

The year ahead (2007) should see several significant developments for our pension scheme and we pensioners.

First, the latest 3 yearly valuation, including the size of the deficit and the size of the company contribution for the forthcoming period, should be signed off by end March. We expect the deficit to remain a significant figure. The company and trustees, overseen by the Pensions Regulator should agree a payment plan to remove the deficit over a period of years. If this period is longer than 10 years (the Regulator’s usual target) for this relatively profitable company, we should expect a particularly convincing justification for this from all 3 parties!

Secondly, from April we expect our annual pensions rise based on the increase in the Retail Price Index up to December 2006. The relevant RPI rise should be disclosed in January. Since it is likely to be more than 3%, the pensions increase will not be the full figure for most of us since in particular, increases on pension earned for pre-1997 service are `capped` at 3%. You will have noticed in the newspapers, more realisation dawning round the country that older people, especially pensioners, have higher increases in their cost of living than younger folks. Nevertheless, while there is a scheme deficit, we have not succeeded in persuading the company to add a discretionary increase to the amounts set out in the rules.

Thirdly, we are hoping that there will be elections for member trustees and for the ICL Pensions Members Committee (IPMC) this year. As we have recently noted, there are now more pensioners receiving pension (5,100), than there are active-employee members in the scheme. Yet there are only 3 pensioner representatives on the IPMC, compared with 13 actives representatives. Some adjustment of numbers must be made! There are also around 8,400 people with a deferred pension entitlement (i.e. they have left the company/group but are not yet drawing pension) which the pensioner reps are representing.

The law is still that there should be a minimum of one third of the members of the trustee body (in our case, directors of the trustee company) drawn from the membership. At present the three member directors of our scheme are selected by the IPMC members from amongst themselves, a relatively `undemocratic` way of proceeding, particularly given the 13 to 3 majority on the IPMC for `actives`. We are asking the company to allow a direct election of trustee directors from the membership, which should allow fairer representation of pensioners.

I would like to conclude by thanking, on behalf of all we pensioners four people in particular:

• Alison Moss, Pensions Manager for the last 4 years, who is leaving the company to seek new excitements and a well deserved change of scene and who has done so much to ensure the pension function at ICL/Fujitsu has run smoothly
• Simon Wardrobe, our contact in the company for all website matters and much more besides
• Alan Thomson, who tirelessly develops and operates the website on our behalf
• and last but not least, Adrian Turner who produces the highly popular `Bits and Bytes` and otherwise helps keep the show on the road!

Thanks to them and all the best to all for the New Year.