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News Update

The 2023 AGM Minutes have been added to the Resources page

 

 September 2022 Update - Loss of value v RPI Inflation


 You will be aware that inflation is already at very high levels and may go higher yet. As at July 2022 a pre 1997 S&N pension has lost 24.6% of its value against RPI inflation, almost half of which has arisen in the last year. We do not yet know what if any discretionary increase will be awarded to pre 1997 pensioners this year. However already up to 2021 pre 1997 pensions had seen a loss of value of 15% due to Heineken not having stood by the undertaking it gave in 2008 that it intended to protect pensions against annual RPI inflation up to 5%.
We would urge as many of you as possible to write to the new managing director of Heineken UK Ltd, Mr Boudewijn Haarsma, reminding him of the undertaking (see below for full details) and asking him to do everything possible to protect pensioners against the effects of this years leap in inflation and to repair the damage caused by Heineken not having complied with what it said in 2008.
Mr Haarsma’s address is
Mr Boudewijn Haarsma,
Managing Director
Heineken Uk Ltd
Elsley Court
20-22 Great Titchfield Street
London
W1W 8BE

Thank you
S&N Pensions Group

Communication with Heineken UK Pensions team.
We have been asked to pass on a message to ask that if anyone needs to write to the Heineken UK Pensions team or Heineken UK management that they do so by email if possible. If they do send a letter by post could they please include an email address for return correspondence. At the moment the preferred means of communication is by email rather than post due to staff working from home and paper handling being a problem.
The Email Address is:       snpensions@capita.co.uk
 

Background

The S&N Pensions Group was created in response to a decision by Heineken not to pay any discretionary increase in pensions in 2010, contrary to an undertaking given by Heineken’s parent company at the time of the takeover of S&N in 2008. The Group aims to try to provide members of the S&N Pension Plan with relevant information and to defend their interests.

 

This issue does not affect former Courage employees and nor does it apply to inflation protection for deferred pensions. It applies to pensions in payment based on employment of S&N employees before 1997. Deferred pensions and pensions in payment earned after 1997 are protected against inflation by law but this does not apply to S&N pensions in payment earned pre 1997.

S&N had a long-standing practice of protecting pre 1997 pensions through annual discretionary increases. It was not clear if Heineken intended to continue this practice so it was raised with them prior to the takeover. At the 2008 S&N Shareholders meeting held to approve the takeover the following statement was read out on Heineken’s behalf:

What Heineken said in 2008: 

‘There is a practice of providing discretionary pension increases each year in line with retail price inflation (capped at 5%) on pensions built up in the Scheme before 6 April 1997, to the extent that these exceed the Guaranteed Minimum Pension. These increases are not guaranteed and are discretionary, but it is Heineken's intention to continue this practice.’

This was never a legally binding undertaking but was taken as a clear statement of intent by a company of high international reputation that it intended to protect S&N pensions against inflation. 

 

What has happened since 2008:

 

Less than 2 years after the takeover Heineken announced in autumn 2010 that there would be no discretionary increase in pensions that year. Since then while discretionary increases have been made annually they have, except on 2 occasions in 2012 and 2015, been below the level of RPI.

As a result you can see the value of a pre 1997 S&N pension has lost over 15% of its value since the takeover. To put this in context an average pension in 2010 was £5,000. The spending power of this pension has now been reduced to around £4,240. Inflation has accelerated since July 2021 when this comparison was done and this pattern is expected to continue into 2022.

While any increases which help to offset the effects of inflation are welcome we think that it is unacceptable that Heineken has more often than not chosen not to fully protect the value of pensions against the effects of inflation - in spite of the fact that it undertook to do so and could easily afford to. If you agree with this please support us.

Who we are

We are an independent, non-profit making organisation with voluntary officers (none of whom receive any payment for their services), elected each year at our annual AGM which is open to all members of the S&N Pension Plan. We are all former employees of S&N.

All members of the S&N Pension Plan are welcome and are entitled to join the Group. Membership is free although Members may be invited to contribute voluntarily to running costs from time to time.

 

As our Group has no offices and we wish to keep running costs to a minimum we will communicate with members only via email or this website. Please, wherever possible, pass on copies of correspondence to other members who may not have access to computers or the internet.

 

If you are a member of the Plan we would welcome you as a member of this Group. Please use the relevant section of the website to register.  You will be able to post comments, see any news and arrange to get e-mail updates (*).  This will all make communication much easier.

 

Please support this Group as it is important for all members of the S&N Pension Plan. Success depends on the involvement and action of the members.  Please look at the material on the Resources page and see what you can do to help. 

 

Thank you.

 

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