Mirror/Express merger – AMP writes to Trustee

AMP members have been following with interest, and probably some alarm, news coverage of Trinity Mirror’s proposed takeover of Northern & Shell. (Northern & Shell is currently owned by Richard Desmond and publishes the Daily and Sunday Express, the Daily Star and Star on Sunday, as well as magazines including OK!)

Various pension-fund implications of the proposed takeover have been highlighted in the media, and now AMP secretary Gerald Mowbray has written to the independent chairman of the MGN Pensions trustee board, Joanna Matthews, to find out where the board stands and what safeguards it has secured, or is seeking, to protect our members’ future pensions.

There is a busy agenda for the Association’s AGM in London on October 16 (details elsewhere on this website), which will be attended by Joanna Matthews, as well as Trinity Mirror’s group finance director Vijay Vaghela, TM’s deputy finance director Philip Brown, and group pensions manager David Astley. No doubt the consequences of the takeover will be discussed.

You can link to news stories about the takeover below:

http:/www.pressgazette.co.uk

http://www.telegraph.co.uk/business/2017/10/07/pension-trustees-prove-roadblock-130m-merger-trinity-mirror/

 

Annual meetings 2017 – update

Trinity Mirror’s group finance director Vijay Vaghela will be the principal speaker at this year’s annual meeting in London on Monday, October 16. Deputy group finance director Philip Brown will also attend.

Members will be updated on all the AMP business of the past year, plus ongoing problems and projects, including the trustee board make-up, and the impact of the proposed Mirror/Express merger.

Join your pensioner colleagues at the annual general meeting on Monday, October 16, at the usual place – the St Alban’s Centre, Baldwin Gardens, off Gray’s Inn Road, London – at the same time as last year, 11.30am.
Speakers:
Vijay Vaghela, group finance director, Trinity Mirror
Joanna Matthews, independent chairman of the MGN trustee board

Deputy finance director Philip Brown, group pensions manager David Astley, and group pensions administration manager Carol McNamara will also attend.

Scottish annual meeting
The Scottish annual meeting is on Monday, November 6, at the usual venue, the Daily Record and Sunday Mail offices in Glasgow, with an 11.30am start.
Vijay Vaghela and David Astley will be the guest speakers.

New chairman for AMP

DEBORAH THOMAS has been appointed chairman of the AMP following the recent and unexpected resignation of Jill Palmer.
Deborah said: “What a privilege it is for me to be appointed chairman of the AMP. The committee is a distinguished crowd. What’s more they are a good bunch of people to have on your side. All I can say is that I am very moved and proud and will do my best.

“As the new chairman I hope to focus our meetings on all of our aims and objectives being realised. I know our committee members are already aware that the Association must be managed efficiently, effectively and economically on the members’ behalf.

“I shall be seeking advice, and not a little wisdom, from our secretary Gerald Mowbray. I also hope to pick the brains of our treasurer Roy White. He used to be the treasurer for Mirror Group Newspapers so he’ll soon put me straight.

“Deputy chairman Tom Brown was a friend of my late husband Steve Turner and I hope to look Tom up when I’m in Scotland in a few weeks’ time. I shall also be knocking on the door of that dynamic duo, Caro Cluskey and Brian Bass, who manage the website and the newsletter and just about everything else.”

Jill Palmer cited a conflict of interests between her role as AMP chair and her position as chairman and trustee of the Journalists’ Charity. She said: “I have reluctantly decided to resign from the committee of the Association of Mirror Pensioners. I really enjoyed being involved and am sorry it did not last longer.” Recent recruit to the AMP committee Nick Fullagar also stood down following Jill’s resignation.

Debbie’s appointment was made after a canvas of the full AMP committees, both London and Scotland. There were no other candidates, which illustrates the wholehearted support she enjoys.

AMP secretary Gerald Mowbray said: “I am very pleased to confirm Deborah Thomas has been elected as our new chairman. I will formally record the appointment at our next committee meeting in September, and we will ask for formal endorsement for the continuation of the appointment, along with other officers and committee members, at the AGM and Scottish annual meeting later this year.”

Debbie is uniquely qualified to take on the AMP chairmanship, particularly given her NUJ negotiating background at Reed International, and, perhaps even more relevant, her involvement in the organisation and management of the British Association of Journalists, co-founded by her late husband and Daily Mirror hero, Steve Turner.

Over the years, Debbie undertook a huge amount of work for the BAJ, and in fact ran BAJ solo, full-time, for nearly a year during Steve’s initial illness in 2002.

She has a great deal of experience in every aspect of membership matters, including welfare and guidance for members, as well as in management, administration, event organisation, publishing and promotions.

Debbie added: “My main field of interest on the committee so far has been promotion and recruitment. It is important that Mirror Group pensioners from all departments, all walks of life and all trade unions are represented by the Association of Mirror Pensioners. So if you are reading this and are not already a member, join today! It only costs a tenner for life.”

The Association also welcomes members’ additional voluntary contributions towards its Reserve Fund, an all-important insurance should we need to go to court again, or require other expensive professional advice in order to protect our pensions in the future.

If you navigate to the “Join Us” page from the drop-down menus above, you will find a joining form.

If you know friends or colleagues from Mirror Group days – all titles, all departments – who could be members of AMP but aren’t, please point them in our direction.

If you have any other queries or need help or advice, please use the “Contact Us” form – your email will go direct to AMP HQ.

Trinity AGM

COMMITTEE man BILL ROWNTREE attended Trinity Mirror’s 2017 annual general meeting, held at the Museum of London Docklands on May 4, on behalf of AMP…

TRINITY’S chief executive Simon Fox stressed to shareholders that, although the print market was “challenging”, he believed the digital growth of audience and revenue would outgrow the loss from newspapers.

This, despite a “Trading Update” issued the same morning showing that TM print publishing revenue declined by 12 per cent for the first four months of 2017, only partially offset by digital growth at 6 per cent. Overall, group revenue fell by 16 per cent during that period.

He said the strategy of “Grow, Build, Protect, and Consolidate”, together with Trinity’s unique local and national footprint, were the vehicles for improving the operating margin and the dividend.

Challenged as to whether Trinity saw the future more with local titles rather than nationals, Simon said he saw it as a mix of both, together with associated websites. He also emphasised that new websites were being created, and cited inyourarea.co.uk which had come online only the day before.

Group finance director Vijay Vaghela reiterated TM’s approach to the defined benefit (DB) pension schemes operated by the group. (In addition to the Mirror Schemes there are two smaller schemes, the Trinity Retirement Benefit Scheme and the Midland Independent Newspapers Pension Scheme.)

Although in deficit, Vijay said he believed the DB schemes collectively had enough money to pay pensions up to 2045, subject to “certain conditions”. When I spoke to him after the meeting, Vijay agreed this calculation combined all the TM schemes, and promised to provide separate figures to AMP for Mirror pension scheme(s).

He also said that the combined deficit was expected to be eradicated by 2027 by a combination of contributions and asset [investment] returns, provided these returns were in excess of 2.6 per cent. Following that, company contributions were due to cease.

This all sounds like good news for Trinity Mirror and the shareholders, but perhaps not such good news for pensioners?

The company may have its figures correct, but I will wait to learn what our trustees, and indeed all the trustees, say about these proposals.

We do not know exactly what all the “conditions” are and, of course, there is another 3-year valuation under way.

Fingers crossed.

Trinity Mirror challenged by Frank Field

IN the wake of the BHS pension furore, two recent articles in The Times – one chillingly illustrated with a picture of Robert Maxwell – criticised Trinity Mirror for its share buy-back policy at a time when the company has high pension-fund deficits. And experts have called for the Pensions Regulator to be more pro-active.  [Cutting, right, from The Times, Jan 2, 2017.]

By AMP deputy chairman TOM BROWN

FRANK Field, MP, who has earned a reputation as pensions watchdog, has suggested the Pensions Regulator should block Trinity Mirrorʼs move to spend ££millions on a share buy-back – and instead spend the money on reducing its pensions shortfall.

Amid growing disquiet over the fate of pension funds following the BHS and turkey firm Bernard Matthews affairs, Mr Fieldʼs stance has been supported by other experts. They also criticise the company for distributing cash to shareholders, saying the money should be spent on reducing the £426 million pension-fund deficit.

Mr Field, chairman of the Commons Select Committee on Work and Pensions, told The Times: “Here is an obvious case for the Pensions Regulator to act when the company is worth less than the deficit and yet is embarking on a £10 million share buy-back. Any spare money should be going towards reducing that deficit.”

He also challenged the agreement between the pension fund trustees and the company for a recovery plan allowing Trinity Mirror 13 years to close the deficit gap as “far too long a period in which to balance the books”. He added that this was another aspect which should be investigated by the Pensions Regulator.

Since embarking on its £10 million buy-back programme Trinity Mirror has spent £2.3 million, regularly reporting the purchase of small parcels of shares which, on January 6, amounted to 2.5 million ordinary shares of the total 280 million ordinary shares in issue.

Among other experts questioning the companyʼs strategy, former pensions minister Baroness Altmann was quoted: “Trinity Mirror is one of those companies with a massive pension scheme and a rising deficit. Itʼs hard to see how a share buy-back squares with this situation.”

Lady Altmann suggested that while conventional dividends were acceptable to reward shareholders, share buy-backs were more questionable.

Highly respected independent pensions specialist John Ralfe pointed out that in 2012 the company cut a planned £100 million deficit contribution to £30 million to repay other debts, in effect putting unsecured bondholders ahead of pension fund members.

He added: “It cannot be right for Trinity Mirror to be giving extra cash to shareholders when there is a huge hole in its pension scheme, especially as it reduced pension payments by £70 million as recently as 2012. If the law is not up to the job of preventing this, parliament should pass new laws.”

In reply, Trinity Mirror said it had agreed to pay an extra £7.5 million contribution to its schemes when opting for the buy-back. A spokesman said: “We fully consulted the pension fund trustees and the regulator was notified. We remain committed to addressing our pension scheme deficits and believe we strike the right balance between payments to the pension schemes and returns to shareholders whilst maintaining headroom for investment.”

The 2012 cut in contributions had been approved by trustees.

 

Trustee Andrew retires

ANDREW WATSON – former Daily Record photographer and night picture editor – has retired as pension trustee at the end of his elected term as a ‘B’ director (a member-nominated director [deferred]).
At the AMP’s Scottish annual meeting, his former colleagues thanked him and paid tribute to his years of work on their behalf as a  trustee over the past 15 years.
Andrew writes: “As I’m now in receipt of my MGN pension and no longer a deferred member, my status has changed to that of a (very young) pensioner.
“I reckon that during my term of office I’ve been the most travelled member of the trustee board, covering well over 100,000 miles – with early starts and late finishes par for the course.
“As well as being a member of the board, I’ve also been active on its governance, management and business review committees, and I served as deputy chairman of the board for several years.
“Although there have been many changes since I started, our role as trustees is simple – to make sure pensions are paid to our members on time and for as long as they are due to be paid.
“But it’s not quite that simple !
“There have been times when difficult decisions have had to be taken, but rest assured these decisions have been made in the best interests of all members and after taking expert advice from our great team of professional advisors.
“Hopefully I may be able to return to work with my fellow trustees at some point in the future – in another capacity – and use the knowledge gained over many years to the benefit of all our pension scheme members.
“On a personal note, I’ve a challenging time ahead early in the New Year when I’m due to undergo major heart surgery, and a (hopefully) not too lengthy recovery period.
“It has been a privilege serving as one of your trustees for so many years, and having your support and confidence to allow me to do so. For this privilege I say ‘Thank you’.”

Have a cracking Christmas!

We wish all our members and their families a very Merry Christmas and a happy New Year – and beyond.

We want to hear from you

IN this autumn’s Mirror Pensioner on page 10, members will have read about the setting up of a sub-committee chaired by Tony Patey. The sub-committee is now open for business and Tony welcomes comment and opinion from all AMP members – you can get in touch initially through the Contact Us page via the drop-down menu above.

“Fantastic!” “Brilliant!” “Superb!”

WHAT’S all the fuss about? Everyone’s talking about the latest Mirror Pensioner magazine, sent to AMP members last month.
Its 16 full-colour pages are packed with news, updates, views, interest, action, personalities, and give “a very heartening account of the AMP as a live organisation that is active on all sorts of fronts”.
If you were expecting your copy of Mirror Pensioner this autumn and it hasn’t arrived, either you moved house and forgot to let us know, or you thought you were a member of AMP but aren’t.
Either way, please get in touch via the Contact Us page (see dropdown menu.)