Last updated |09:30 Monday 5 October
Any new or amended questions will be highlighted in navy blue and marked up to make it easier for you to identify what’s been added or changed.IMPORTANT: Please ensure your email address is up to date and you are checking them regularly as you’ll be receiving all of the latest announcement news via this.
Click on the links below to navigate to that section of the question and answers. If you’re looking for a certain question, you can use Ctrl+F key to search for a particular keyword.
Click here to view all shore collective consultation questions
** If you have an alternative proposal that you would like the business to consider, submit via this form . **
What exactly is being proposed?
The proposal is that from 1 November 2020 the future contributions into your DC investment account in the Scheme will be:
In addition, from 1 November 2020, you will no longer be entitled to receive an Income Protection benefit.
Can the consultation period be increased from 60 days to 90 days?
We have noted the reasons for the request to extend the consultation period from 60 days to 90 days. We have considered the request very carefully as well as assessing the level of restriction those on board feel they face by having a 60 day period rather than 90 day.
As part of this consideration we assessed the rotations pattern of the Fleet members and the outcome of this assessment indicated a significant majority were on leave for either part, or all, of the 60 day consultation period whereby financial records and advice could be sought if considered appropriate by the members.Additionally we considered the current proposed contribution change against the changes made in 2016 where a 90 day period was utilised. The company feel the changes made in 2016 were of a more significant change to pension provision where more time to consider these was perhaps necessary. Equally, in 2016 we faced a different business and economic outlook with a need to address cost savings paramount at the current time.
Following consideration of all the relevant factors the Company has decided that the consultation period will remain at 60 days, ending on 16 October 2020. We will be soon be issuing further guidance as to how to access your DC fund online and make use of the modelling tools available from Scottish Widows, to help members gain greater understanding of the impact of the proposed changes.
*NEW 05/10* Have individual consultation meetings been added and/or the dates changed?
Yes. As a result of feedback from you, we’ve ensured everyone in the population we’re consulting with has two formal individual consultation meetings booked in, if needed. We’ve scheduled these for w/c 5 and 12 October to ensure everyone has opportunity to have their meeting(s) before consultation closes on 16 October.
We have had nothing off the Trustees with regards to the Company’s proposal, yet the Company have indicated they have already consulted the trustees about further changes.
The proposed change to DC contributions is a company matter rather than a Trustee one, therefore we would not expect there to be a communication from the Trustees on this.
What happens to other benefits?
At present there are no other changes being proposed to the benefits you receive from the Scheme, although Carnival UK is in discussion with the Trustee around some potential further changes to your benefits including removing the Salary Link on your DB section benefit accrued up to 31 May 2016, and the level of Life Assurance benefit you are eligible for.
Once these discussions are complete, we will provide you with further information about any proposed changes to these benefits.
You recently emailed indicating the company and the trustees were in negotiations for 2019 pension contributions was there any update on this?
This is an ongoing discussion and indeed has been for some months now. This centres around the actuarial valuation as at 31/03/19 and the relevant factors, not least the trading impact of Carnival, that the Trustees need to consider when assessing the assumptions and level of risk that they feel comfortable with. At present there is no further update at this time.
Who would be affected?
All members of the DC section of the Scheme on or after 1 November 2020 who were also active members of the DB section of the Scheme on 31 May 2016. If you are planning on retiring or leaving before 1 November 2020, the changes would not affect you.
What would happen if no changes were made to our pension provision?
It is impossible to say with certainty exactly what the effect may be. We believe that making these changes are necessary in light of the Carnival UK’s ongoing costs review in the current environment.
**NEW 24/09** The FAQs states that the Company is “unsure of the impact on the current scheme”, so the large proposed pension cut is based on no information on how the scheme will, or indeed, will not be affected. Can you provide further detail?
The specific question this quote relates to is the question above ” What would happen if no changes were made to our pension provision?” The response stated in the above question is in relation to the impact upon the Company rather than the pension scheme. All operations across the Fleet are paused as a result of the Covid-19 pandemic and we do not yet have a confirmed date for when operations will resume; even when we are in a position to return to service it is likely to be on a phased basis. Whilst we cannot predict the future, doing nothing will not support the very real need to conserve cash resources.
Have alternatives been considered by Carnival UK?
Yes. The decision to propose changes to our pension arrangements has not been taken lightly. Our review has considered a number of options to manage cost associated with the benefits package offered to employees.
What were the alternatives considered by the company?
The Company considered a range of options from a phased reduction in employer contribution % over a time, through to different possible levels of employer contributions %. However, the option that both addresses the need for cost savings as well as dealing with the making pensions provision more equitable across the business, is the basis proposed in the consultation documents.
What is being offered to other brands – we should be all the same – collective approach?
All brands are tackling the need for cost saving in different ways based upon their own circumstances, operational requirements, and contractual and jurisdictional obligations.
Changes were last made to the scheme in 2016; were we asked to sign a letter of agreement for those changes?
Scheme members were not required to individually sign agreements to the changes in 2016 as it was carried out under the pensions legislation which is different from the employment law consultation. Essentially under this route – and one we are similarly using for these proposed pension changes – the company propose a change and consider the responses from members after the consultation ends before making a final decision. Any decision taken is applied to all members of the pension scheme.
In 2016 the Union were included in the talks. Why are they excluded this time?
There are no scheme members who are covered by Collective Bargaining Agreements (CBA) with the Unions and therefore we are consulting with scheme members through elected Employee Representatives, and individually. However the Unions which represent the fleet have been kept fully abreast of our consultation exercise, and a scheme member can be accompanied at a formal 1:1 consultation meeting by a work colleague, or a Union Representative if they wish.
What is my designated retirement age from Carnival UK?
Under the pension scheme you have an age of 60 (Fleet) and 63 (Shore) where you reach what is termed your “normal retirement age”. This is the age at which your Defined Benefit pension is paid without being reduced for early payment. However, in terms of your employment, the company no longer operates a fixed retirement age so the two elements are independent of each other.
What are other companies in similar situations doing?
As you may know from the media, many other companies are facing the same challenges in the current Covid-19 environment.
Are the company making the same cuts to the MNOPF contributions?
The nature of the POPC pension scheme being a single employer scheme is such that we as the employer have the ability to propose alternative DC contribution rates. The MNOPF, as a multi employer scheme, does not afford us the same ability to influence contribution rates.
If I currently opt out of pension and choose to take a cash alternative in my pay instead of contributions to the new DC section, what will happen?
If y ou currently opt out of pension and receive the cash alternative instead of contributions to the Scheme, this will continue, but at the revised rate described in the proposal guide.
Can you clarify the effect on the possible removal of the salary link to my defined benefit pension?
The salary link is not proposed, as part of the ongoing consultation, to be removed. This is part of a wider ongoing discussion with the scheme Trustees, and in the interest of being open and transparent, we felt it right to reference this as part of the consultation. If, ultimately, Trustee consent is obtained and we look to remove it, it will be subject to a fresh consultation with scheme members and in line with pensions law, only from a future date. Any changes to pensions cannot be retrospective so any earnings growth since its introduction in 2016 would be unaffected.
How does the proposed removal of the Group Income Protection affect me?
If th e proposals are adopted following the consultation this benefit will no longer be applicable and, in line with our other employees, the Company’s standard sick pay approach – as outlined in our policy – will be the only element payable in the event of long term sickness.
Does the proposal to remove the Group Income Protection Insurance benefit affect my pension?
No, as an ex-Cunard employee you receive the GIP Insurance benefit as a stand alone benefit. The proposals we are making do not affect your current pension arrangements in any way.
What is the role of the Trustee in relation to the proposed changes?
It is the Trustee’s duty to ensure that the Scheme is run in line with the Trust Deed and Rules. Carnival UK has presented these proposals to the Trustee and will continue to keep them informed during the consultation process.
The Trustee will need to be satisfied that a valid statutory pension consultation has been carried out and that your accrued benefits are protected. You should bear in mind that the Trustee’s role does not include representing your views in the consultation process nor being involved in the communications from Carnival UK.
Does the proposed structure meet the requirements of auto enrolment?
I t is compulsory in the UK for employers to automatically enrol their eligible workers into a workplace pension scheme. The employer must also pay money into the scheme. The proposed contribution structure is more generous than the minimum contribution requirements.
What happens if I don’t agree with the proposed changes?
Although we believe that the proposed changes are based on sound business reasons, we appreciate that some members may not agree with them. The consultation process is designed to make sure that your voices are heard and any questions, comments or suggestions are shared with Carnival UK before final decisions are made. Whilst recognising that changes may have to be made, Carnival UK is committed to two-way communication and we hope that together we can shape our future benefit arrangements.
What is the role of the Pensions Regulator?
The Pensions Regulator oversees the running of pension schemes and can intervene in cases when scheme trustees, employers or advisers may have failed in their duties. The Regulator has powers to protect funds held in pension schemes. It also aims to promote high standards and good practice in the pensions industry. If you are not satisfied with the consultation process set out above, you have the right to complain to the Pensions Regulator who may be contacted at:
Why is it that only active members of the Scheme are affected by the proposed changes and not the deferred or pensioner members?
We cannot change the DC contributions paid in the past or the benefits already built up in the Scheme by deferred and pensioner members. These benefits are protected.
How do I know that the benefits I have already built up in the Scheme will be safe?
Carnival UK is committed to ensuring that all benefits already built up by members in the DB and DC sections of the Scheme are protected. The Scheme continues to be governed by the Trustee and they have a legal duty to act in members’ interests.
What is the rationale behind the switch from basing contributions on Contributory Earnings to Basic Salary? In other words, the switch means that employees will pay higher contributions in pure monetary terms than they do currently. The employer will benefit through the overall rate reduction from 35% to 5%. So what is the specific motivation for the switch in basis?
The rationale behind this is to help minimise the reduction in the employer contribution value, and therefore support the objective of cash conservation. Although we have the headlines of moving from 35% to 5% (shore) and 6% (fleet) – as the 35% is applied to a reduced level of earnings the reduction is not a straight drop in cash terms between 35% and 5%/6%. We accept that moving to basic salary does mean an increase for the members but we need to be consistent from an administrative perspective in the earnings definition used.
Why are we being asked to make a 5% employee contribution when members of The Carnival UK Pension Scheme only have to contribute 3%?
The reason for this is that the current employee contribution % for POPC scheme members is 5%; to change this would have meant a further element to proposed changes which we were keen to keep to a minimum.
What happens if I pay Additional Voluntary Contributions (AVCs)?
The proposed changes do not impact AVCs. If you currently pay AVCs this will continue as normal.
Do we offer anything where employees can pay a fee each month to be part of a salary protection scheme or if this is something that should be done externally should they want to through a provider?
No, this is not something we currently offer – if someone wanted to source this they would need to do this externally.
What would be the impact of the proposal on my take home pay?
Under the proposal, in future your DC contributions would be based on your Basic Salary as opposed to Contributory Earnings (see your proposal guide for the definitions of Basic Salary and Contributory Earnings). Your contributions would continue to be paid at the rate of 5%.
This would result in an increase to the contributions you pay of £468 per annum (or around £39 per month), though allowing for the tax relief the impact on your take home pay would reduce this amount. Details of the impact on basic, higher and additional rate tax payers are shown in your proposal guide.
What happens if my working hours change?
If your working hours change during a Scheme Year (for example, you go from full-time service to part-time service), this change would automatically be identified in the contributions paid into the Scheme e.g. lower earnings mean lower levels of contributions.
What would happen to my pension if I leave Carnival UK before my Normal Retirement Age?
Your benefits would be calculated at the date you leave, made up of two parts:
You would then have two options (just as you do now):
You should consider your options very carefully before making any decision. More information would be sent to you at the time.
Who should I speak to about early retirement?
Please contact POPC.Queries@carnivalukgroup.com
Can I leave the Scheme?
Your option to leave the Scheme remains the same as it has always been. If you decide to leave the Scheme, you would not build up further retirement savings in the DC section of the Scheme and you would lose the Salary Link on your benefits in the DB section of the Scheme. However, the DC investment account you have built up to date would remain invested in your chosen investment options until you either take retirement benefits or transfer your savings to another pension arrangement.
Choosing to leave the Scheme is a significant decision and should not be taken lightly.
We would strongly recommend that you take regulated financial advice before making such a decision. It should also be noted that if you leave the Scheme, in line with UK legislation you would be automatically re-enrolled at l east every three years.
Will any cuts to Salary have any effect on the P&O Princess Pension scheme especially the Defined Benefit scheme which is based on Final Salary?
For the DC section of the P&O Princess Cruises Pension Scheme there will be an impact as the % contributions will be applied to a lower figure so the input will be less.
For the DB section the definition of Final Pensionable Earnings that the DB pension is based on uses the greater of “the last 12 months earnings” or “the annual average of Pensionable Earnings over the period of three consecutive tax years which gives the highest result out of the 13 years ending on the last day of active membership of the DB section.” As a result, any reduction in salary should not impact DB benefits already built up unless the period of reduction is way in excess of the planned temporary salary reductions.
What would happen to my current DC investment account?
The proposed changes would not affect any contributions made before the proposed effective date of changes. Our proposal is that the new contribution structure would take effect from 1 November 2020 and these contributions would be added to your existing DC investment account.
Will I need to change my investments?
No. There are no proposed changes to the investments available in the Scheme. If the proposed changes go ahead, your current investment choices would be applied to contributions from the date any changes take effect.
What if I leave the Scheme or Carnival UK before 1 November 2020?
Your benefits would be unaffected by the proposed changes.
How do the proposed changes affect my entitlement to State pension benefits?
The proposed changes do not affect your entitlement to State pension benefits. You would continue to be eligible for State benefits, at your State Pension Age, as you are now and as set out by the Government from time to time.
Can the company advise me on my personal pension arrangements?
The company are not able to provide advice to you so we would encourage you to take independent financial advice to ensure you don’t take any actions which may affect your long term income position.
If I’d like broad information about how any proposed salary reduction may impact my pension, where can I get this?
Scheme information is available via the DC providers website here . Additionally, John Leavey can assist john.leavey@carnivalukgroup.com
Is it possible to have direct access to a dedi cated Towers Watson rep for up to date and accurate pension CETV and benefits statements so we can approach our FA with accurate forecasts? Presently Towers Watson only have an email service; the phone answering service is only for emergencies. Tower Watson, due to COVID, are taking too long to quote accurate and reliable projections.
Willis Towers Watson (WTW) are the administrators of the DB section of the scheme. The consultation is focused on the proposed reduction to DC contributions so, as part of the consultation exercise, the DB pension figures should not need to be assessed. However, unfortunately it not possible to provide a dedicated person at WTW to tackle any particular individual queries you may on this part of your pension entitlement as the work is distributed amongst a team at their end. The email address to send requests to is POPCPSadmin@willistowerswatson.com, alternatively John Leavey (john.leavey@carnivalukgroup.com) can help co-ordinate any requests you may have.
Can we have a link to how people access the Scottish Widows site for the DC scheme information?
The scheme DC site can be accessed at https://www.scottishwidows.co.uk/save/popc/ As well as the scheme information guides, you are able to login to your own account from this link but you will need to ensure your registration details are up to date. If you are unable to access you will need to contact Scottish Widows as per the contact details shown.
What if I have personal questions about my pension?
If the information requested is of a factual nature you can speak to John Leavey john.leavey@carnivalukgroup.com. If you are seeking advice then you should speak to your financial advisor in the first instance
What would happen if Carnival UK stopped trading?
If Carnival UK was to stop trading and became insolvent, the Scheme would be wound up. Provided certain conditions are met, members would receive benefits of at least those provided by the Pension Protection Fund (PPF).
The PPF pays benefits to members of eligible pension schemes (such as the Scheme) if the Principal Employer becomes insolvent and there are insufficient assets within the Scheme to cover the PPF level of compensation.Visit www.pensionprotectionfund.org.uk to find out more.
Can Carnival UK legally change my pension benefits?
Yes. The changes to future pension benefits that Carnival UK has proposed have been reviewed and approved by our legal advisers as lawful. We are required to consult with affected members for at least 60 days, and to consider the responses received, before making any decision on whether to implement the proposed changes.
Are the company aware of the Private Members Bill currently going through parliament seeking to outlaw the practice of Fire & Rehire for employees who do not agree with the proposed T&C’s?
The Company is ensuring that all relevant and current employment and pension legislation, which applies to the proposals, are being met. Whilst we fully recognise that this is an emotive subject, we would also remind all staff of their contractual obligations in regards to confidential information. Please refer to your contract for full details, and please do speak to your line manager in the first instance if you have any queries.
How do I provide feedback?
Details on how to provide feedback during the consultation can be found in your proposal guide.
Will Carnival UK listen to the feedback?
Yes, Carnival UK will consider all feedback.
I have a question, who do I send this to?
If you have a personal contractual question, or a question regarding the consultation process, firstly please refer to this process flow chart to help you direct your query to the most appropriate team.
I have a proposal that I wish for the business to consider, how do I submit this?
Please see this form to submit a written submission, for example if you wish to provide feedback, or an alternative proposal.
Where can I get more information?
If you require and further information or have any questions please contact People Support, Carnival UK by emailing: peoplesupport@carnivalukgroup.com
How does the proposed removal of the Group Income Protection affect me?
If the proposals are adopted following the consultation this benefit will no longer be applicable and, in line with our other employees, Carnival UK’s standard sick pay approach – as outlined in our policy – will be the only element payable in the event of long term sickness.
Does the proposal to remove the Group Income Protection Insurance benefit affect my pension?
No, as an ex-Cunard employee you receive the GIP Insurance benefit as a stand alone benefit. The proposals we are making do not affect your current pension arrangements in any way.
What happens if I don’t agree with the proposed changes?
Although we believe that the proposed changes are based on sound business reasons, we appreciate that some members may not agree with them. The consultation process is designed to make sure that your voices are heard and any questions, comments or suggestions are shared with Carnival UK before final decisions are made. Whilst recognising that changes may have to be made, Carnival UK is committed to two-way communication and we hope that together we can shape our future benefit arrangements.
How do I provide feedback?
Details on how to provide feedback during the consultation can be found in your proposal guide.
Will Carnival UK listen to the feedback?
Yes, Carnival UK will consider all feedback.