The government are responsible for the pension up to 2012, it’s RM after that.swindonandy wrote:Wait, what? When did this come about? The shortfall was all paid off by the government 3/4 years ago now.dingo wrote:crisis of our pensions and the employers cost going forward which is estimated to reach around 40% when the next actuarial is done and Royal Mail have said they will not pay which threatens the future of our pensions going forward. in post office ltd the company has announced a consultation process about closing the defined benefit pension scheme for all employees and putting all those employed before 2008 into an inferior defined contribution scheme.
I lose track of how many pension variations there have been now...
The problem with defined benefit pension schemes is there are two main variables that cannot be exactly measured: Life expectancy and investment returns. So if people live longer than expected or the investments perform worse than expected, there will potentially be a shortfall.
With defined contribution pensions, the company just pay a certain percentage of wages, along with the employee share, and the onus on providing a decent pension falls more on the investment returns and the employee saving more of their own money.