16th February 2007
WEALTH TAX, TUPE NEGOTIATIONS CONCLUDED
Amicus has been in negotiations with Lloyds TSB over the non-contractual elements of your package to get the best deal possible on your transfer to KPMG. Contractual elements of your package are protected under legislation but many benefits are not, including Pension provision. You will receive full details of the package negotiated on your behalf from Lloyds TSB and in this newsletter, we highlight some of the benefits achieved through these negotiations. PENSIONS Final Salary Scheme staff Green heritage staff in the final salary scheme will remember that they used to be in a contributory scheme where staff paid 5% of their salary into the Pension fund. However, your salary was „ghosted‟ up by 5% to cover the cost of this contribution. As part of a pay deal in the past, it was agreed that you would become non-contributory members and therefore gain the benefit of the 5% net increase in salary. KPMG only offer a defined contribution pensions scheme and in order for members to achieve an equivalent pension on retirement staff will be required to contribute towards this future. In recognition of this it has been agreed that your old contribution level of 5% and in some cases more than this will be loaded back onto your salary. It has also been agreed that you will have access to an Independent Financial Adviser and it is important that you take this offer up to consider your options in the new scheme. Even if you contribute the full amount allowable their will still be a shortfall to achieve your maximum pension allowable under your old Lloyds TSB plan and KPMG have agreed to make up this shortfall. Additional contributions made by KPMG will vary depending on how much service you have left to natural retirement age. Amicus has further secured the following guarantee that KPMG will review their contribution rate “at 3 yearly intervals to ensure that the projected fund is in line with the projected LTSB pension. Contributions may be adjusted accordingly.” This arrangement is dependent on individuals joining the pension scheme at the earliest opportunity and contributing to a maximum level. This must be done or KPMG will not guarantee to make up any shortfall. Again it is important that you take up the offer of independent financial advice. Pension Investment Plan (PIP) staff These staff will have the option of transferring across to the KPMG stakeholder scheme. If you wish to contribute at your current level KMPG will match that contribution. Amicus advise all staff to take up the offer of a free Independent Financial Consultant to take the opportunity to review their level of contribution as the contributions made by KPMG are higher at all levels than LTSB assuming individuals also make a higher contribution. Overtime The KPMG policy is not to pay overtime to its staff. KPMG has therefore offered £750 to buy out this benefit in a one off payment for Band 6 staff. Continued over…
Salary reviews Your 2007 annual salary review will be as undertaken by Lloyds TSB with any increase effective from 1st April 2007. Thereafter your annual review will take place in October, commencing in October this year. In addition for Band 6 staff Amicus has secured a commitment that your salary will move at least in line with the percentage scale increase in Band for the next 3 years, subject to performance. Flavours KPMG will consolidate 4% into your salary to compensate for the loss of this benefit which you can use to purchase similar products in Flextra. KPMG will provide you with full details. Sharesave Schemes (SAYE) KPMG will calculate the profit you would have received at the end of your shareplan. They will do this by calculating the difference between your option price as if at the end of your additional payments (full details will be provided on how you continue to pay the next 5 monthly payments after leaving the organisation by Lloyds TSB) and today‟s market price and the difference will be paid to you as compensation grossed up for tax purposes. Payment will also include any loss of bonus payments which would have been payable at maturity. Free Shares KPMG will pay in February 2008 one year‟s payment equivalent to 3% as a one off. This year‟s free shares will be paid by Lloyds TSB. In addition Lloyds TSB will also pay 2/12ths in 2008 for your contribution in January and February this year. Partnership Shares For those staff who currently contribute to the scheme, KPMG will pay the equivalent of 1 years matching shares with payment in March this year. Banking Benefits Staff who current have any Banking benefits will receive a one off payment compensating for the loss of 1 years worth of the benefit. Staff affected will be advised of this individually. Holidays KPMG standard holiday entitlement is equal to 25 days per year. Individuals who currently receive more than 25 days will have their remaining holidays bought out, by payment into salary. Individuals will have the option to buy these holidays back again through Flextra and then in effect keep their existing holidays and existing pay. Union Recognition KPMG has advised that it is their intention to give the Unions notice of de-recognition for the purposes of collective bargaining. However, they are willing to keep open an informal dialogue with us over matters relating to the TUPE transfer. Members will still retain their statutory right to be represented by Amicus at any formal hearings such as Disciplinary, Grievance etc and of course you retain all other benefits available to you as Amicus members. Helpline If you have any queries about this Newsletter or your new total package then please contact our helpline on 08081 449595 who will be happy to help. John Bancroft, National Secretary Susan Worsley, Chair – Amicus Lloyds TSB, National Committee