NATS Defined Contribution Scheme

The process is still on target for implementation on 1st April 2009, although there is a 2 week window after this date which can be used for loss ends before payment is deducted from employees’ salaries. NATS are aware of the NTUS position that if the Defined Contribution Scheme has not been ‘signed off’ before employee payments are due to be deducted, then we would expect the current CAAPS scheme to be available to those employees.

Agreement reached on the following:

1. We have agreed to set the ‘costs’ at 4.5% until Dec 2010, after which will carry out the first 5yr review, then every 5yrs. If it exceeds 4.5%, then NATS will take the hit on this.
2. If after any review, the trustees advise that the ‘costs’ are below 4.5%, future ‘costs’ to the member may be reduced accordingly, subject to review by the DC Pension Committee
3. At each review, if there is a surplus in the ‘admin’ fund, it will be distributed appropriately to each current members ‘pot’
4. That communications around the DC scheme will tie into the same timeframe as that of the DB Scheme (i.e. annual member statements produced in December)
5. Medical retirement such as that for the DB Scheme does not work in a DC scheme. We have therefore agreed a Salary Protection scheme:
   a. Employee will receive 75% of basic salary for 5yrs
   b. At the end of 5yrs Employee will receive Lump Sum Basic Salary x 2
6. ATCO Loss of Licence will continue alongside the Salary Protection Scheme
7. Trust Deed and Rules are agreed.

So far, the set up costs (paid by NATS as one of costs) included are:

1. White Labelling investment funds
2. Trustee Training for yr1
3. Independent Chair Trustee costs yr1
4. T&RE costs for yr1 for ICT
5. All legal set-up cost
6. All admin set-up costs
7. Use of Stochastic Modeller
8. Reduction of Employee annual charge from £25 to £20  
9. Any additional set-up costs incurred

Jon Menice