Change to ambulance pension scheme needs legal approval

This will mark the final step in a process that led to court action being taken against the scheme’s trustees by Unite the Union.

The dispute arose in 2017 when the union began legal proceedings in a bid to restore £7m. of a deficit in the service’s final salary pension scheme, which was closed in 2015.

However, an agreement was reached out of court and the legal action was withdrawn.

More than 20 employees were affected.

The final salary scheme was established in January 1975 and its broad objective was to provide a retirement pension of 1/60th of their final pensionable salary for each year worked.

The scheme closed on 28 February 2015 and the amount being claimed by the action was equal to its estimated deficit as of 1 January 2013.

The court proceedings will see an application from the trustees to change the rules to enable them to move everyone who was on the final salary scheme to a different scheme.

‘They said quite clearly that if we carried on pursuing them through the courts they would have to go into administration,’ said Unite regional officer Bob Lanning.

‘It’s still not a final salary pension scheme, but they improved the amount of money they would put into the defined contribution scheme.

‘They improved the offer, the [active] members were balloted and they voted unanimously to accept it, so now it has to be signed off by the court.

‘It’s a far from ideal solution, but because of Guernsey’s lack of legislation when it comes to pension protection it’s the best I can do.’

He said there was one objection to the change, from the only deferred member of the scheme who no longer works for the service.

‘He is far from happy with it because he still wants his final salary scheme,’ said Mr Lanning. ‘I have done what I can for that individual. I do care for everyone but there’s nothing else I can do. I’m there to represent the majority.

‘You would have hoped that as the only deferred member he would have had some form of protection, but there was nothing. He was offered a compensatory payment but he views it as derisory. The only action he could take is through the law courts.’

Having reached agreement with the trustees, Mr Lanning would not be able to take up this man’s claim through the courts. ‘I can’t pursue it for one individual at the risk to all the others,’ he said.

A spokesman for the board of the service said: ‘The negotiated agreement is about to reach the final stages. The legal process is due to be completed in the next couple of weeks. Unfortunately, we are unable to provide any further details at this time.’