Press release

21 April 2008

Stewart Ritchie, President of the Faculty of Actuaries, has been invited by the Scottish Government to head an inquiry into a dispute over pensions at Grangemouth oil refinery, near Falkirk. He will carry out a study to clarify issues which are in dispute between operator INEOS and Unite union at the oil refinery, relating to proposals for the future of the INEOS pension fund.

The offer has been conveyed to both INEOS and trade union representatives by Scottish Ministers, who are awaiting their response. If the parties are in favour of the initiative and cooperate by providing relevant financial information, it will mean suspension of industrial action on 27-28 April, pending the resumption of substantive negotiations – aided by Stewart Ritchie’s report. However, the report will be non-binding and if agreement is not reached at the end of the process and the dispute remains unresolved, industrial action could ensue.

John Swinney, Cabinet Secretary for Finance and Sustainable Growth, said: “It is not acceptable for this dispute to go unresolved and inconvenience Scottish people and business. This is a matter that must be solved by constructive dialogue involving both parties.

“As President of the Faculty, Stewart Ritchie is in a unique position to provide the distinguished, independent and quality advice needed to help the parties concerned to reach an amicable solution to these issues”.

Stewart Ritchie said: “I will do everything I can to help, within the terms of my brief, and am delighted that the Faculty of Actuaries can be of service in this way.”

For more information please contact:

Barbara Beebee on 020 7632 2130

Notes to Editors:

1. Ministers have invited Stewart Ritchie to make his report available to both parties by the end of May 2008. His work will be funded by the Scottish Government.
   
   
2. Stewart Ritchie biography: Originally from Belfast, Stewart is a graduate of Warwick University, a Fellow of the Faculty of Actuaries and of the Royal Society of Arts, and an Honorary Fellow of the Chartered Insurance Institute. His work for the Actuarial Profession has included many years on the Pensions Board, Chairman of the Board of Examiners, Vice President of the Faculty of Actuaries and Chairman of the Statutory Money Purchase Illustrations Working Party.
   
   He has specialised in pensions for many years, is a former Chairman of the Association of Pensioneer Trustees and held pensions positions in the Association of British Insurers, National Association of Pension Funds (NAPF) Benefits Council, and the Society of Pension Consultants.
   
   In 1997 he was appointed by the Government to the Pension Provision Group, an independent panel of experts established as part of the Pensions Review to analyse current and projected future pension provision in the UK. In 2001 he became a founding Council member of the Pensions Policy Institute.
   
   In 2002 he was made an Officer of the British Empire in recognition of his service to pensions and the actuarial profession.
   
   He is also Director (Pensions Development) of AEGON in Edinburgh.
   
   
3. Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.
   
   
4. Members of the Profession have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd’s.
   
   
5. The Profession is governed jointly by the Faculty of Actuaries in Edinburgh and the Institute of Actuaries in London. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of the Profession in society.