- 2011 Water, Environment & Transport Service Group
- 9 June 2011
Conference notes with extreme concern the decision by Severn Trent PLC taken in May 2011 to give notice of its intention to close the final salary based Severn Trent Water Pension Scheme.
Sadly most water companies have already closed their final salary schemes to new members with just one small water supply company, Cambridge also deciding to close its scheme to existing members. Severn Trent is the first of the big 10 water and sewage companies to do so and marks a potentially disastrous trend that could spread throughout the whole of the UK’s water industry.
Conference deplores this decision especially when OFWAT had made a particular provision in its last price review to enable companies to adequately fund their pension schemes.
52% of staff belong to Severn Trent’s final salary pension scheme and every one of them stands to suffer a major loss of pension benefits as a result of the company’s drastic, unnecessary and harmful decision.
Conference wholeheartedly supports the Severn Trent branch in its campaign against this appalling decision and instructs the WET Executive
1. to use all possible avenues in support of the branch’s efforts to convince the company to change its mind.
2.to send a clear message to every other water company in the UK warning them of the repercussions they may face if they decide to follow the example of Severn Trent.