No. 07/2005 Ref: WMcC/lsd/ccpay05 Date: 03 March 2005
Dear Colleague
PAY INCREASE - 01 JANUARY 2005
Computacenter has advised the Union that 6 individuals have not had their 3% pay increase applied to their salaries. It is not clear as to why these increases were not made and the Company is currently investigating this. The Company has also said that it is taken steps to resolve the matter and as soon as I have any further information I will let you know.
My apologies to the 6 individuals concerned. The Union was aware that there may be some difficulties in applying the pay increase but the Company assured the Union that it would in fact be paid to all concerned in the February salaries. The Union is as disappointed, therefore, as the individuals concerned as this turn of events and we will do everything possible to ensure that the increase and arrears are paid at the earliest possible opportunity.
Yours sincerely
W McClory
Assistant Secretary
TO: ALL COMPUTACENTER MEMBERS & REPRESENTATIVES
ALL BRANCHES WITH MEMBERS IN COMPUTACENTER
Dear Colleague
PAY CLAIM 2005
The CWU and Computacenter held a further meeting on Wednesday 12 January 2005 to progress the pay negotiations for this year's pay award. Whilst the meeting was reasonably constructive, there still remains a significant gap between the current positions of the Union and the Company. A further meeting has been arranged for 20 January 2005 and a further report will be made to members following that meeting.
Yours sincerely
W McClory
Assistant Secretary
No. 15/2004 Ref: WMcC/LSD/CCbthp Date: 17 May 2004
TO: ALL COMPUTACENTER MEMBERS & REPRESENTATIVES
CC: ALL BRANCHES WITH MEMBERS IN BT PLC
Dear Colleague
BT/HP STRATEGIC PARTNERSHIP - IMPLICATIONS FOR COMPUTACENTER
A number of members have sought clarity about the implications for Computacenter following the formal public announcement by BT and Hewlett Packard of their strategic partnership. It has been confirmed that the contract between BT and Computacenter (Hexagon) will continue for the remainder of the 5 year contract. In these circumstances the job security guarantees which were given at the time of the transfer from BT to Computacenter will be honoured in full. So in the short-term, therefore, there are no adverse implications for the existing BT/Computacenter Hexagon contract.
The issue which does arise however, is what is likely to happen at the end of the current contract in 2007.
However, after 2007 the issue is less clear. The commercial logic of the BT/HP partnership would suggest that the desktop activities contained in the Hexagon contract will transfer to HP. The Union understands that discussions about the future of the Hexagon contract will take place between Computacenter and HP management at senior levels. The Union has written to Computacenter asking for early discussion about the future of the HP contract and as soon as further information becomes available, I will let you know.
You can be assured that the Union will do all it can to ensure that your interests are protected both in the immediate and longer terms. That is why we have pressed BT to confirm that the job security agreements which last for one year beyond the end of the current Hexagon contract will be honoured in full. I should also stress at this point, the Union has not given agreement to the arrangements which will apply to those BT employees who are due to transfer to HP as part of the strategic partnership. Discussions on this are continuing.
Yours sincerely
W McClory
Assistant Secretary
COMPUTACENTER - VOLUNTARY EARLY LEAVER SCHEME
Computacenter has now replied to the Union's letter of 02 February 2004, a copy of which was appended to CC Briefing No. 06/2004, in which a series of detailed questions were asked. The responses to each of the questions is as follows:
1. Question: Has the Inland Revenue agreed to the terms that the company proposes to offer? Inland Revenue approval is essential before these terms can be communicated.
Answer: This is a key element of the terms of the scheme and we are actively pursuing Inland Revenue approval.
2. Question: The pension elements of the terms relate to deferred pensions held within the BT Pension Scheme. The early payment of a deferred BT pension requires the approval of the BTPS Trustees. What contact has been made or is planned with the BTPS Trustees to obtain their agreement to release the deferred BTPS pensions?
Answer: The company will be writing to Accenture today seeking the approval of the BT Pension Trustees to the scheme.
3. Question: I would be grateful for your confirmation of the status of the proposed scheme. Is it a voluntary early release scheme, or is it a redundancy scheme?
Answer: It is a voluntary release scheme. However, for taxation and mortgage insurance purposes we are seeking approval from the Inland Revenue to having it classed in the same way as redundancy. This is most beneficial to the employees.
4. Question: I advised you that the BT terms, which are essentially those which you propose to offer have been singularly unsuccessful in attracting those aged over 45, particularly with regard to the 45-54 age group. BT is considering offering supplementary terms to run alongside its NewStart terms to the end of March. As the terms the company proposes to offer do not include these supplementary terms, the company will be in breach of its contractual obligations. Is it intended that any supplementary terms offered by BT will apply in Computacenter?
Answer: I have no formal knowledge of any supplementary scheme being introduced by BT and I am, therefore, not in a position to comment specifically on this. If BT introduces such a scheme then the company will review its terms and determine its affordability. If it does not cost-in commercially then it is most unlikely that it would be made available.
5. Question: What guarantees has BT / Accenture given regarding the timescales for the payment of deferred pension benefits, assuming that BTPS Trustee agreement is given to the early payment of deferred pensions?
Answer: It is recognised that BT are themselves currently engaged in a similar release programme but on a much greater scale. This will, no doubt, put a great deal of pressure on the Pensions Administration Group and may as a consequence cause some delay in the payment of pension for those who qualify for immediate pension payment. We will be seeking clarity on this from Accenture.
6. Question: Can you confirm if the compensation payments will be paid by Computacenter direct through its salary process and if so, when individuals would expect to receive the compensation payment?
Answer: Computacenter will pay all payments with the exception of the pension element and we aim to do this in the same time frame as the final salary.
7. Question: What arrangements will be made to deal with cases where the estimate is higher than the benefits which individuals actually receive?
Answer: This has been included in the Q&A documentation.
8. Question: Can you confirm the timescales for the offer of voluntary early release and the provision of estimates.
Answer: Ideally the plan would be to provide estimates within 14-18 days of receiving 'expressions of interest'. However, we will be reliant upon BT pensions calculations being received.
9. Question: Has the company considered offering employment elsewhere in Computacenter to those who agree to leave the company under the release scheme terms?
Answer: People taking the Early Leaver Payment will exit the company. There will not be an offer of employment within the company available and any jobs that do arise will be required to assist in resolving any shortfall. Aside from that you will know that there are tax liabilities on the individual should the company retain them in employment having received compensation.
10. Question: Has the company had any discussion or dialogue with BT on whether individuals who leave under the terms of the scheme will be able to obtain employment in BT?
Answer: People leaving under the scheme are leaving the employment of Computacenter. There is no BT policy that excludes people who have left other companies from applying for jobs in BT.
11. Question: Would you please provide an age and length of service profile of the permanent employees on the BT contract?
Answer: Profile on age / length of service will be forwarded separately.
(n.b. the Union has now received this information).
12. Question: Can you provide a geographic spread of the numbers of likely or preferred surpluses?
Answer: Details of geographic spread and numbers will be forwarded separately.
(n.b. the Union has now received this information).
13. Question: What steps have been taken by Computacenter to require BT to make available to Computacenter all of the work promised under the contract with BT?
Answer: We have been and will continue to be vigorous in our efforts to gain more work from BT and we have regular meetings with them on this. The best way to convince BT to give us more work is through our ability to demonstrate continuous improvement in the services we deliver to our customer.
14. Question: The 'Expression of Interest' form requires individuals who do not wish to be considered for these terms to state this. Why is this necessary? The Union's preference would be for only those who wish to be considered for release to indicate this
Answer: We have deleted this section from the 'expression of interest' form.
15. Question: Can you please formally advise the Union of the criteria for selection in the event that there are more volunteers than the company is prepared to allow to leave?
Answer: In order to ensure that selection of leavers is fair and consistent with our Equal Opportunities Policy we have formed a selection forum of senior operational managers and HR.
16. Question: The 'Questions and Answers' should contain a very clear statement about the options available to individuals with regard to the Computacenter pension. In this connection individuals should be advised of the implications of them remaining in membership of the Computacenter Pension Scheme beyond 21 March 2004.
Answer: Please see attached letter produced by our pension intermediary Orbit Benefits.
17. Question: Whilst I note that there is no formal appeal against non-selection, and that this is entirely at management discretion, nonetheless individuals have contractual rights to pursue any grievance through the company's grievance procedure. I would be grateful for your confirmation that this would apply when an individual wishes to pursue a grievance against non-selection.
Answer: Reference to the company's Grievance Procedure is now included in the Q&A documentation.
18. Question: I would be grateful for your confirmation of the steps the company has taken and will continue to take to reduce their non-permanent resource on the BT contract.
Answer: Since the transfer of staff in March 2002 the temporary resource within the BT account has been continually reduced. At transfer 90 temporary staff came across to Computacenter.
The answers to some of these questions raise other matters which the Union will now pursue with the company. As I indicated in Briefing No. 06/2004 the Union has requested a meeting with senior management in Computacenter and we will pursue these matters at that meeting. At this stage there has been no response from the company to our request for such a meeting.
Further information will be provided to Branches in due course.
Yours sincerely
W McClory
Assistant Secretary
Date
PRIVATE & CONFIDENTIAL
Mr X
23 Any Street
Any Place
London
Dear X
COMPUTACENTER PENSION SCHEME - YOUR PENSION BENEFITS
I am writing on behalf of the Trustees to provide you with information regarding your benefits accrued to 27th January 2004 and your options following your interest/acceptance of the Voluntary Early Leaver Programme at Computacenter. The attached statement from Scottish Equitable, the Plan's investment manager, gives details of the current value of your pension benefits. This letter provides a summary of your options. Please read this letter carefully, as a decision may be required from you.
YOUR OPTIONS
You need to select one of the following four options:-
1. Leave the value of your benefits invested in the Computacenter Pension Scheme.
2. Transfer the current value of your benefits to an individual pension plan.
3. Transfer the current value of your benefits to a Stakeholder Plan or to your new employer's pension scheme.
4. Take you pension benefits immediately with Scottish Equitable or another pension provider.
Please refer to the attached sheets for full details of each option. For all transfers, whether to another Scottish Equitable contract or to another investment manager or pension scheme, the value at the date of actual transfer will depend upon unit prices at that time.
When you have had an opportunity to consider your options, please let us know which way you wish to proceed by completing and returning the attached Leaver Options Form in the enclosed pre-paid envelope. Please note that Option 1 will apply, if you do not advise us of an alternative choice.
You are also currently contracted out of the State Second Pension (S2P) via a Personal Pension Plan, policy number, «Policy_Number». Whilst you are in employment and pay full rate National Insurance Contributions, Protected Rights premiums will continue to be credited to the policy. If you do not want to continue contracting out with this policy, please complete the enclosed cancellation notice (CA1543).
FUTURE PLANNING
This letter covers the action to be taken with your past pension benefits. Now that you are considering leaving Computacenter, you will face new decisions regarding your future pension planning. This may be whether you should join your new employer's scheme, or whether to invest into existing or new Personal Pensions. Either way, planning properly for your income in retirement is very important.
If you are currently resident or intending to become resident in another country, it may not be in your interest to leave your funds invested in the UK. Taxation arrangements vary from country to country and you should take advice locally on how, either leaving your benefits in the UK, or transferring them overseas, will affect your personal tax position.
If you have any queries with the contents of this letter or the enclosures, please contact me at this office.
Yours sincerely
Bridget Thompson
Account Manager
OPTION 1
LEAVE YOUR BENEFITS INVESTED IN THE COMPUTACENTER PENSION SCHEME
Since you joined the Plan, contributions from you and the Company have been directed into your individual pension account. You can, if you wish, leave the accumulated value of your individual pension account within the Plan, where the units already purchased will remain invested in the selected Scottish Equitable fund(s).
The enclosed statement from Scottish Equitable shows the current value of your individual account assuming the money stays invested with Scottish Equitable. Please be aware that this value is not guaranteed and the value may rise or fall in line with investment performance. If you are invested in the With Profits fund, a market value adjuster may apply which could alter the value of your fund.
If you select Option 1, you will become a 'deferred' member of the Computacenter Pension Scheme and you should retain the enclosed statement as evidence of your benefit entitlement. Charges will stay at the same level as when you were an active member of the scheme unless you are notified otherwise. Any queries, requests for information and correspondence should be directed to us, rather than Computacenter. Please keep us informed regarding any change in your home address.
Your ability to select other options in the future is not affected by choosing Option 1 now. The option to transfer, for instance, can be made at any time up to one year prior to the Normal Retirement Age of 60.
OPTION 2A AND 2B
TRANSFER YOUR BENEFITS TO AN INDIVIDUAL PENSION PLAN
A transfer of the full current fund value of your individual account may be made to a Personal Pension or Buy-Out Bond, each being written as an individual policy in your own name.
2A - Personal Pension
The primary features of a Personal Pension are:
You and/or your next employer may be able to make continuing regular and/or single contributions to a Personal Pension, as long as you are not a member of an occupational pension scheme, in respect of the same employment.
Benefits (excluding protected rights, as above) can be taken from age 50 onwards without the need to actually retire and in stages, if required, allowing for 'phased retirement'.
2B - Buy-Out Bond
The primary features of a Buy-Out Bond are:
A Buy-Out Bond can only accept the transfer itself. You and/or your next employer cannot make additional regular or single investments.
It is possible to transfer in the future from a Buy-Out Bond to a Personal Pension, if you so wish, although surrender charges may apply. It is not possible to transfer from a Personal Pension to a Buy-Out Bond.
With both the personal pension and buy-out bond the pension payable at retirement will depend on annuity rates and on the amount of pension fund available, the type of pension you choose and when you retire. In both cases, the policy would be written in your own name and you will have the option of changing the investment fund(s) currently selected.
OPTION 3
TRANSFER THE VALUE OF YOUR BENEFITS TO A STAKEHOLDER PLAN OR YOUR NEW EMPLOYER'S PENSION SCHEME
You may transfer the value of your individual account to:
A Stakeholder plan. Stakeholder plans are individual policies similar to Personal Pensions and were introduced in April 2001. They can accept protected rights but not all plans do. You should check that any plan you are considering transferring to can accept protected rights.
Your new employer's pension scheme (if it is willing and capable of accepting the transfer).
The amount available to transfer is the fund value shown on the enclosed statement.
As the terms of the contracts will vary from provider to provider and scheme to scheme, you should check that the terms of the new contract are in your best interest.
OPTION 4
TAKE YOUR PENSION BENEFITS IMMEDIATELY WITH SCOTTISH EQUITABLE OR ANOTHER PENSION PROVIDER
If you are over the age of 50, then you may take your pension benefits immediately with either Scottish Equitable or transfer the value of your individual account to another pension provider who will provide your pension for you. Please remember that a pension payable on early retirement will be substantially reduced.
An example of the pension that may be available from Scottish Equitable should you take your benefits immediately is shown on the enclosed statement. Please note that annuity rates are not guaranteed.
Before selecting Option 4 you should seek independent financial advice as annuity rates vary from provider to provider. The figures quoted from Scottish Equitable are illustrative only of the level of pension that may be available - it is likely that alternative pension providers can provide better annuity rates. For this reason it is important to seek independent financial advice.
COMPUTACENTER PENSION SCHEME
LEAVER OPTIONS FORM
If you are in any doubt as to which option represents the best course of action, you should seek independent financial advice. You must satisfy yourself that the terms and conditions of the contract you select are in your best interests.
I have read the letter dated 27 January 2004 and, having understood the terms and conditions, my choice is as follows:
I would like to discuss my options, please contact me on the number below.
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OPTION 1 - I wish to leave my benefits invested within the Computacenter Pension Scheme until further notice.
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OPTION 2A - I wish to transfer the full fund value to a Personal Pension. |
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OPTION 2B - I wish to transfer the full fund value to a Buy-Out Bond. |
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OPTION 3 - I wish to transfer the full fund value to a stakeholder plan or new employer's scheme. |
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OPTION 4 - I wish to take my pension benefits immediately. |
If you have chosen option 2A, 2B, 3 or 4, please complete the name and address of your financial advisor or new scheme administrator in the section below.
Name of Adviser/Scheme: ..........................................................................................................
Address: ..........................................................................................................
.
..........................................................................................................
.
Contact: ..................................................................... Tel No:.....................................................
..
Signed: ...............................................................
............... Date:
.
Name: ...........................
.... Contact Tel No:
..
Payroll No: xxxx
