Lucas / TRW Pensioners Association

Why you should join us

• You can help us to give pensioners a voice and get effective representation on the Trustee Board
• We will keep you abreast of matters which could affect your future pension
• You will receive our regular newsletter
• You will be joining nearly 2000 others who value the role that the Association has taken on.

What is the Association

During late 2003 a small number of retired people began meeting on an ad hoc basis to discuss informally a number of pension concerns and issues prompted by:

• Changes in ownership and management of the Company
• Changes in the ratio of numbers of Pensioners to Employees
• The difficult investment and financial climate
• The concerns and problems surrounding other Pension Schemes
• The government’s proposed Pension Protection Scheme

Currently our fund is solvent, and pensions in payment are not at risk nor has the company taken any actions that could be construed as hostile to the interests of pensioners. There is nothing to be overly concerned about in the short to medium term. For the longer term however there is widespread feeling that future developments and uncertainties call for pensioners to be AWARE, have a VOICE and be INVOLVED.

In order to achieve this it was felt necessary to form a Pensioners Association similar to those already established by groups of pensioners of other large companies. In our case the objective would be TO FOCUS SPECIFICALLY ON THE PROTECTION OF RETIREMENT BENEFITS.

The development of the Association since 2004 has demonstrated that it meets a very real need for TRW pensioners.

• We have nearly 2000 members and membership renewal runs at over 90%
• We have developed systems to effectively communicate with members
• We are members of the Occupational Pensioners Alliance, which helps us keep in touch with changes in pension law and practice
• We have regular and cordial contact with the TRW Pensions Director but no formal recognition as representative of pensioners
• We have supported the nomination of two Member Nominated Trustee Directors with over 80% of our membership giving their written support.

Management of the Association is through a Council. Current members are John Anthony, John Cuckney, John Garroway, Pat Harris, David Hymas, John Ingram, Bob Lucas, Paul Lucas, Bryan Mason, Keith Morrell, Phil Reasbeck, Alan Watkins and Geoff Wyatt.

Membership is open to all those in receipt of a pension or who have a deferred entitlement from the TRW Pension Fund.

YOUR SUPPORT IS VITAL IF WE ARE TO BE SUCCESSFUL IN GIVING PENSIONERS A VOICE IN FUTURE DEVELOPMENTS WHICH COULD AFFECT THE PENSIONS WHICH WE HAVE WORKED AND PAID FOR.

Background

You will be aware of the well-publicised problems in the Pensions industry in general and specifically with the number of "household" name companies with serious financial problems and under funding of their pension schemes. There have been some resultant closures of pension funds leading to significant reduction in benefits to their participants.

The Government’s Pension Protection Fund is a welcome development but needs to be treated with caution as the small print does not match the headlines. In the unlikely event that the liability for our pensions had to be taken over by the PPF we would ALL BE WORSE OFF.

Our fund is financially sound based on an assumption of the continued success of TRW Automotive Inc. but consider the following:

• The Company is a major player in an increasingly competitive automotive market place but has limited operations and assets in the UK
• The company is under its third owner since the Varity merger and its largest shareholder is Blackstone (US-based venture capital company) and they have already taken steps to reduce their shareholding
• It is presently not clear which company within TRW Automotive Inc is responsible for supporting the pension fund if support is ever needed
• There are nearly 60,000 people who are either dependent on the pension fund for their principal income now, or will be when they reach retirement age. There are under 4000 employees currently contributing to the pension fund, and until 2007 only this RELATIVELY SMALL GROUP IS REPRESENTED ON THE BOARD OF TRUSTEES

OUR ROLE IS THEREFORE TO MAINTAIN A STRONG LUCAS/TRW PENSIONERS ASSOCIATION ABLE TO REPRESENT THE INTERESTS OF ALL PENSIONERS.

Setting up and running an association takes effort and costs money. For it to be worthwhile, the Association must: -

• HAVE A LARGE AND BROADLY BASED MEMBERSHIP
• HAVE A CORE OF VOLUNTEERS who will provide leadership and willing pairs of hands
• CHARGE A SMALL ANNUAL FEE to meet the costs of administration and communication with members

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