James presses the government on Royal Mail pension deficit

[TrueBlueTerrier]

# Press Releases
# > Conservatives

http://www.politics.co.uk/mps/press-rel ... 282934.htm" onclick="window.open(this.href);return false;

James Duddridge, Member of Parliament for Rochford and Southend East has asked the Government about the costs to the public purse of assuming liability for the Royal Mail Pension scheme.

In a question to Pat McFadden, Minister of State for Employment Relations and Postal Affairs, James expressed concern about Clause 20 of the Postal Services Bill, which would allow the Government to take both Royal Mail’s assets and deficits onto the same balance sheet.

The most recent estimates put the Royal Mail pension deficit at £5.9 billion. By assuming liability for the pension scheme the Government is pledging to remove the deficit, through an injection of public money. The scheme also has £23.5 billion in assets, James is therefore concerned, that should these two funds be merged and spent in the same year, the public will have to bail out the full pension scheme of nearly £30 billion.

James said:

“I wanted to urge the Government to rethink their unwise solution to the Royal Mail pension deficit to create a scheme which would protect the pensions of Royal Mail staff while limiting the financial burden on the taxpayer.”

“This plan is flawed as the Government are in the short term absorbing the assets from the pension fund to build up the Treasury, while in the long term relying on the public to make up the shortfall.”

[belle smith]

James should go and have a look at the 1995 pension act!

The whole point of the legislation "assuming liability for pension scheme" is actually to enable RM & shareholders to opt out of exsisting legislation, and enable them to defer the payment!

http://www.opsi.gov.uk/acts/acts1995/uk ... -pb2-|1g11" onclick="window.open(this.href);return false;

Look at section 11. Power to wind up schemes & 12. Power to wind up pubic sector schemes.

Look at subsection 1 in section 11 "the appropriate authority" is OPRA has since been changed to The Pension Regulator under 2004 Pension Act.

Look at subsection 3 in section 12 " the appropriate authority" is "Minister of the Crown or goverment department"

Not 100% on this but i belive that by "assuming liability" it would retrospectivly change RMPP to a public sector pension scheme.

Not 100% on this either but if they don't have legislation in place befor next actuarial valuation then The Pension Regulator would have to "wind up the scheme" although i'm not 100% on this point, why else would they put back the date for the valuation?

If a scheme is wound up then it involves paying up the full deficit on the FRS17 basis at that time. That could be as much as £9 Billion, don't think Alistar Darling has that down the back of the couch.

[k979aaa]

James should go and have a look at the 1995 pension act!

The whole point of the legislation "assuming liability for pension scheme" is actually to enable RM & shareholders to opt out of exsisting legislation, and enable them to defer the payment!

http://www.opsi.gov.uk/acts/acts1995/uk ... -pb2-|1g11" onclick="window.open(this.href);return false;

Look at section 11. Power to wind up schemes & 12. Power to wind up pubic sector schemes.

Look at subsection 1 in section 11 "the appropriate authority" is OPRA has since been changed to The Pension Regulator under 2004 Pension Act.

Look at subsection 3 in section 12 " the appropriate authority" is "Minister of the Crown or goverment department"

Not 100% on this but i belive that by "assuming liability" it would retrospectivly change RMPP to a public sector pension scheme.

Not 100% on this either but if they don't have legislation in place befor next actuarial valuation then The Pension Regulator would have to "wind up the scheme" although i'm not 100% on this point, why else would they put back the date for the valuation?

If a scheme is wound up then it involves paying up the full deficit on the FRS17 basis at that time. That could be as much as £9 Billion, don't think Alistar Darling has that down the back of the couch.

Well said and good info there good Buddy the UK GOVERNMENT AND THIS COUNTRY ARE IN BIG SERIOUSS SH*T WE CAN ONLY HOPE THAT GORDY AND HIS SPIVS :mfo ARE GONE SOON!.

[belle smith]

more info on opsi website if you want it

http://www.opsi.gov.uk/" onclick="window.open(this.href);return false;

Pensions Act 1995
http://www.opsi.gov.uk/acts/acts1995/Uk ... 6_en_1.htm" onclick="window.open(this.href);return false;

Pensions Act 2004
http://www.opsi.gov.uk/acts/acts2004/uk ... 40035_en_1" onclick="window.open(this.href);return false;

Income and Corporations Taxes Act 1988 schedule 22
http://www.opsi.gov.uk/acts/acts1988/uk ... n_91#sch22" onclick="window.open(this.href);return false;

Postal Services Act 2000
http://www.opsi.gov.uk/acts/acts2000/uk ... 00026_en_1" onclick="window.open(this.href);return false;