This update will cover several areas and outline what we as a union are doing to ensure that we are actively campaigning for improvements to pensions whilst also recognising that the challenges for many of our members are to pay bills, put food on the table at a time of sustained increased cost of living.
We are focusing our efforts within the Maritime sector on improved organising
Welcome to the latest edition of the Maritime Pensions newsletter, outlining your union’s work to promote pensions and life assurance as fundamental components within the workplace. Whilst pensions are viewed as a complex matter by many, it’s important that we initiate discussions in every workplace about pensions, retirement planning and life assurance. It is also important that the experienced individuals impress upon the younger generation the importance of being in a pension scheme and saving for retirement.
and representative structures and this should not stop at industrial or health and safety, we want to have members actively involved and engaging on pensions so that you and your colleagues have more information, are provided with relevant contact details and have access to the appropriate information and documentation should you need to make amendments or changes etc.
It saddens me when I see individuals working, whilst clearly suffering as a consequence of not having saved into a pension and cannot afford to retire, we must work collectively to ensure that our members can retire in dignity following a lifetime of dedication within the maritime sector.
We are seeing an ever-growing trend for pension schemes to invest in “green energy” investment funds as trustees and provider focus on their Environmental, Social and Governance (ESG) obligations.
You may ask what green energy investments are and what do they look like. Fundamentally green energy investment funds are financial products which ‘pool’ assets (money) to encourage investors, such as pension schemes, to invest in companies and projects focused on renewable and sustainable energy. These funds aim to generate investment returns while supporting the transition to a lowcarbon economy.
Green energy investment funds will encapsulate solar, wind, hydroelectric, and geothermal energy to name just a few areas.
RMT believe that we should consider using these investment funds for the benefit of its members. Green energy
funds’ investments are used to promote ESG appeal of any given investment company, but nevertheless it offers us the opportunity to establish union policy that could address the financial security of our offshore energy members.
As part of the Maritime Pensions Campaign, it has been agreed recently by the union’s National Executive Committee (NEC) that we should develop a clear policy on green energy which should be introduced cross the UK offshore energy supply chain.
We would seek to ensure that workers across offshore energy sector are enrolled into a pension scheme which in turn, aligns with industry touted claims around the concept of ‘quality jobs’, so often emphasised during
discussions with the renewables sector, employers and government officials / departments.
We could emphasise the ESG appeal for the industry and investors would benefit still further, whilst they would be meeting their stated aims around quality jobs. The approach would also enable us to further expose exploitative loopholes created by jurisdictional issues and overseas agency practices which are so often used by employers to pay lower wages and evade their pension responsibilities.
A National Pension Scheme for offshore energy workers within the renewables and clean energy sector could address the challenge of shortterm or seasonal employment by
providing and ensuring long-term retirement savings where employees can carry their built-up pension from one employer to another within the energy sector.
With short periods of projects and activity creating precarious employment conditions and regular changes of employer, many workers face difficulties in securing a stable source of employer contributions.
Beyond worker benefits, a National Pension Scheme would support governmental efforts to monitor offshore energy employment statistics, an issue regularly raised during renewable energy policy discussions. We would be advocating ethical behaviours and corporate responsibility of investors and industry. At the same time, we would be strengthening our pension policy in this sector, we would be seen to be putting a fundamental element at the heart of the industry claims around ‘quality jobs.’ We could create the
ability to ensure retirement planning existed as an additional element of our efforts to establish workforce protections and sustainable conditions across the offshore energy sector.
RMT has recently considered this matter and have made the following union’s policy:
n As part of the Maritime Pensions Campaign, we should be working with government and energy and renewable employers to establish a multi-employer National Pension Scheme which is open to all offshore energy sector workers regardless of employment contract, nationality or occupation.
n The introduction of a National Pension Scheme would allow workers and their employers to continue to contribute to a single pension arrangement when moving from one employer to another.
n3 If your employer offers more than one Defined Contribution (DC) occupational pension scheme CHECK that you are receiving the highest level of employer contribution.
n3 You should also CHECK that the DC pension scheme’s Annual Management Charge (AMC) is giving you value for money. AMCs vary but generally they will be below 0.75% pa. Even a small percentage can increase or reduce your DC pension pot, so CHECK and if your considering changing arrangement contact the scheme administrator or contact RMT for assistance.
n3 Is your family protected in the event of your death? CHECK that you are receiving highest level of life cover as some
n That a generic pension arrangement with the appropriate level of employer and member contribution rate throughout the entirety of the offshore supply chain will encourage energy sector workers to save for their retirement, whilst encouraging industry and government to illustrate that quality green jobs within the sector have decent employment conditions ensuring that we have sustainable energy skills around the UK coast.
While the above policy is in its infancy, RMT are in the process of beginning dialogue with relevant stakeholders, employers, government departments, and our sister unions in respect of the renewable and sustainable energy policy.
I will keep you informed on developments.
employers will offer more than one level of cover depending on the pension arrangement you are contributing to.
n3 Have you completed an Expression of Wish Form? An Expression of Wish Form is a document which states where who would like any death in service payment paid to. As death in service payments are discretionary the trustees of any pension scheme will need evidence that your wishes are being carried out in the event of your death, so CHECK you have completed a form and CHECK that it’s up to date.
Lionel reports:
The Merchant Navy Ratings Pension Fund (MNRPF) Trustees remain committed to protecting member benefits and enhancing services despite challenging economic conditions.
Key developments:
n
Despite economic challenges, the Fund remains secure with a strong funding level and ongoing employer support
n NEW INVESTMENT EXPERTISE
Schroders Solutions has been appointed as fiduciary manager, bringing global investment experience
n STABLE LEADERSHIP
CONTINUES All Trustee Directors re-elected, ensuring continuity and experienced oversight
n ENHANCED DIGITAL SERVICES
Free Guiide retirement planning tool and OneView online portal to help members manage their pensions more effectively
n IMPROVED COMMUNICATION
More frequent updates to keep members better informed about their pension and Fund developments
Despite challenges in the global economy, the Trustees have reassured members that their pension benefits remain secure. The Fund has been designed to withstand the rises and falls of financial markets, with security
underpinned by employers who contribute to the Fund when needed.
The Fund’s recent financial assessment shows assets of £721 million against liabilities of £880 million as of 31 March 2024, resulting in a funding level of 82%. This represents a slight decrease from the previous year's funding level of 85%, which is to be expected when markets are challenging. Although there is a funding gap, the Fund has a robust, long-term approach to investment management.
Employers contributed £10 million during the year to March 2024 and have continued making payments since then. Their ongoing support helps protect member pensions even when financial markets are challenging.
Solutions as their new fiduciary manager in May 2024. This change reflects the Trustees' commitment to regularly reviewing service providers to ensure they deliver the best value for members.
Schroders Solutions, which manages over £118 billion globally with more than 170 outsourced investment clients, demonstrated a clear understanding of what's needed to keep member pensions secure. While the Trustees maintain ultimate responsibility for the Fund's investments, Schroders Solutions provides expert advice and implements the investment strategy decided by the Trustees.
All Trustee Directors have been reelected to the Trustee Board by the Maritime Pensions Forum. Doug Ross continues as Chair, alongside Melanie Cusack and Lionel Sampson. This continuity ensures a stable leadership team that can build on their experience and keep making improvements to member services.
Following a thorough review in 2023, the Trustees appointed Schroders
The Fund continues to expand its digital offerings to help members manage their pensions more effectively. The free Guiide retirement planning tool helps members make informed decisions by showing their MNRPF pension alongside their wider finances. Separately, the OneView
portal allows members to manage their pension online, update personal details, and access real-time information about their pension.
The Trustees remain focused on protecting member interests and ensuring the Fund continues to pay the benefits members are entitled to. With stable leadership, a new investment
partnership, and ongoing employer support, the MNRPF is well-positioned to continue serving its members effectively despite economic uncertainties.
Members requiring assistance can contact the Fund's administrator, Aptia, or visit the Fund website at MNRPF.co.uk for the latest information and updates.”
As previously reported the MNRPF Ill Health Early Retirement (IHER) Court Case settlement concluded in February 2022 and it was expected that over 8,000 members and dependants would receive additional benefits because of the settlement.
As a reminder members and dependants are split into three categories A, B and C:
CATEGORY A/B
Category A/B members are those who retired on an IHER pension on or after November 1989 and before 8 October 1993, and had an IHER pension which were: n scaled back on retirement; and/or n was reviewed after it came into payment and as a result was reduced or suspended.
CATEGORY C
Category C members are those who: n were in service on 8 October 1993, and had been in service long enough at that time to have qualified for an IHER pension (had new IHER pensions not been stopped on 8th October 1993) n and left service before Normal Pension Age due to permanent
unfitness for sea service at the time they left service
The MNRPF Trustees have shared with RMT the 13th quarterly update report since the implementation of the IHER Settlement. The update provides a detailed breakdown of progress in processing and paying arrears and pension uplifts to affected members across three categories mentioned above as at 30th April 2025: Category
+ (Annual) Interest)
Category A/B
CATEGORY A/B
Progress:
n 371 cases in scope. n 369 cases processed. n £22.5m in lump sums and £0.6m in pension uplifts paid.
Lionel and RMT will keep members informed on developments.
Lionel Sampson, RMT nominated MNRPF Independent Trustee Director
CATEGORY C MEMBERS
Progress:
n 3,695 living cases: 98% complete.
n 1,586 estate cases: 167 determined, 91 eligible.
n 375 transfer cases: 27 determined, 3 settled.
n 55 trivial commutation cases: 3 settled.
PAYMENTS:
n £10.8m in lump sums.
n £97k in annual pension uplifts (range: £8–£2,880 p.a.)
COMPLAINTS:
n 18 formal complaints received. n 5 upheld, 13 rejected.
n 2 escalated to the Pensions Ombudsman.
The Trustees advise that the IHER Settlement project is progressing well, with the majority of living cases resolved and a significant portion of estate and transfer cases underway. Financial compensation is being distributed appropriately, and oversight mechanisms are functioning effectively.
We will keep you updated on developments.
is best for you?
When saving for your retirement through a Defined Contribution (DC) pension scheme, one of the most important decisions you will make is how your money is invested. Pension providers typically offer two main approaches: the default investment fund and the self-select investment fund. Each has its own advantages and considerations, depending on your financial knowledge, risk appetite, and retirement goals.
A default investment fund is a preselected investment option that your pension contributions are automatically paid into if you don’t actively choose your own investments. It’s designed to suit the needs of the average pension scheme member and is often structured to balance growth and risk over time.
KEY FEATURES:
Lifestyle or target-date strategy
Investment Funds: These funds typically start with higher-risk investments (like equities) and gradually shift to lower-risk assets (like bonds or cash) as you approach retirement.
Low maintenance: Ideal for those who prefer a hands-off approach. Diversified: Usually spread across various asset classes to manage risk.
PROS:
✔ Convenient and easy to use.
✔ Professionally managed with retirement in mind.
✔ Suitable for most pension scheme members, especially for those who don’t want to make their own investment decisions.
CONS:
✘ May not align with members personal risk tolerance or retirement goals.
✘ Less flexibility and control over where your money is invested.
A self-select investment fund allows members to choose their own investments from a range of options offered by their pension scheme provider. This approach is for individuals who want more control over how their pension contributions are invested.
KEY FEATURES:
Self-select investment funds allow members to build a portfolio that reflects their personal preferences and risk appetite.
Investment options may include equities, bonds, property, ethical funds and more.
Active involvement: Requires regular monitoring and decision-making.
PROS:
✔ Greater control and flexibility.
✔ Potential to tailor investments to your specific goals or ethical considerations.
✔ Opportunity to outperform the default fund (though with higher risk).
CONS:
✘ Requires investment knowledge and time.
✘ Risk of poor performance if not managed well.
✘ No automatic adjustment as you near retirement unless the members does it themselves.
Continue in the default fund if you...
n prefer a simple, low-effort approach and are comfortable with a professionally managed, broadly diversified strategy.
Choose self-select if you...
n have investment knowledge, want more control, and are willing to actively manage your pension investments.
n Default funds often have lower Annual Management Charges (AMCs) typically below 0.75%, whereas self-select funds can be more expensive although one could argue that investment returns on self-select funds may be greater than default funds.
n Before selecting a self-select fund check the AMC against the fund’s investment performance over 3 months, 1 year and 3 years to give you an idea how the fund has performed.
Both investment options serve different types of scheme members.
THE DEFAULT FUND is a good choice for those who want investment professionals to manage their money.
SELF-SELECT FUNDS cater to those who want to take a more active role in their retirement planning and know what their financial goals, risk tolerance are when making their own investment decisions.
Do you need help with a pension problem or understanding your pension?
As part of being a member of RMT we have a dedicated Pension Officer who can assist you on most things to do with your occupational pension and other pension matters. In recent months we have assisted members on variers pension matters including:
• Late payment of contributions
• Incorrect pensionable service
• Understanding State Pension forecasts
• Delays in pension scheme transfers being made
• Applications for Ill Health Benefits
• Understanding scheme rules in respect of dependant benefits.
If you need help please get in contact with RMT Pensions Officer Paul Norris on 020 7529 8806 or at p.norris@rmt.org.uk
Please be advised that RMT does not give financial advice. That can be found at www.moneyhelper.org.uk
As we have stated on many occasions through the Maritime Pensions Campaign newsletter, pensions is a key part of our industrial strategy when it comes to improving our members terms and conditions.
Pensions are “deferred wages” and are therefore high up on the bargaining agenda when it comes to negotiating our members employment contracts.
Here are three examples of where recently we have been able to make improvements, not only to pay and conditions, but also pensions.
We would hope that going forward we will be able to include further updates in this newsletter.
Pacific Nuclear Transport Ltd (PNTL)
n Introduction of Combined Nuclear Pension Plan (CNPP) Defined Contribution pension scheme from allowing all Ratings to join 1st April 2026 with the following member and employer contribution rate options:
– Member 4% / Employer 9.5%
– Member 7% / Employer 13.5%
(Our members at PNTL currently receive 6% employer contributions so this a significant improvement)
n Members will receive Life cover of 4x salary as a member of CNPP.
n Employees who receive “MOX” bonus will see this made pensionable.
n During the transition period crew members will have the opportunity to attend Defined Contribution pension briefing sessions on pension schemes. Recorded briefings will be made available.
Stena Line Seafarers
n Following negotiation with Stena Line, management have agreed to increase the employers’ contributions in 2025 by 0.77% and by a further 0.5% in 2026.
n This will result in a total increase in the employer’s pension contribution rate of 1.27%, increasing the employers total pension contributions from 5.23% to 6.5%.
n Following negotiation, the employer has agreed to increase their contribution into the Tidewater Workplace Pension Scheme from 8% to 8.5%, an increase of 0.5%.
As previously reported the McCloud case stems from a 2018 Court of Appeal ruling which found the protections offered to older members of public service pension scheme were discriminatory based on age in that younger workers were not offered the same pension protections as older workers.
As a result of the Court of Appeal ruling this led to the implementation of the McCloud remedy, which aims to rectify this discrimination across affected schemes, including the Principle Civil Service Pension Scheme (CPS), the pension arrangement which many of our Royal Fleet Auxiliary (RFA) members contribute towards.
As a reminder the McCloud remedy effects individual who were members of the CPS between 1st April 2015 to 31st March 2022.
To ensure members of CPS are not treated any less unfairly, than they would have before the changes to Public Sector Pension Schemes were made by the Government in 2015, the CPS must issue Remediable Service Statements (RSS).
The RSS must include:
n Two Annual Benefit Statements – One showing benefits under the LEGACY SCHEME (e.g., classic, classic plus, premium, or nuvos), and; – One showing benefits under the ALTERNATIVE SCHEME OPTION (alpha scheme rules applied during the remedy period).
We have been recently advised that depending on the complexities of each member’s case, RSS’ will be issued by
31st August 2025 to 95% of active (contributing) members with the remaining 5% of these members receiving theirs by the end of September 2025.
As we previously reported no Immediate action will be required by members as they do not need to choose between the two benefit options until they retire and claim their pension.
There are some ongoing issues which still need addressing in respect of those members who retired before remedy implementation who are still awaiting compensation or updated pension statements. We will advise you on these developments when we receive clarification.
