Pension briefing

[TheTrolleyMan]

The bloke with Chris Webb on tonight’s pension breifing sounded like he had absolutely no idea on the new pension scheme arrangements or procedures

[yellowbelly]

The bloke with Chris Webb on tonight’s pension breifing sounded like he had absolutely no idea on the new pension scheme arrangements or procedures

There was a 'Pensions Brief'?

Found it: https://www.youtube.com/watch?v=ceD80CsjFvs

[TheTrolleyMan]

He talks plenty about the old / current schemes but a massive lack of info on the new pension scheme

[tramssirhc]

The absolute irony of two blokes who are getting a final salary pension paid for by the members telling workers about the great success of getting them an inferior pension scheme. The CWU has to be the most pisspoor union in history.

[Gary55]

We will end up with about 10 different pensions each a bit worse than the last

[Mr Rush]

We will end up with about 10 different pensions each a bit worse than the last

10 pensions, 3 tiers of workforce, 0 future.

[Hyrrokkin]

CWU useless as usual

[21topbowler]

All designed to give us less

[redlen]

Why will the CWU not acknowledge this Ponzi scheme gives no security in retirement. you could get back nothing.

[Postie Malone]

Why will the CWU not acknowledge this Ponzi scheme gives no security in retirement. you could get back nothing.

The only way that you could get back nothing would be if something unbelievably catastrophic happened in the world, at which point no pension whether state, government backed DB pension or personal pension would be likely to pay anything either.

This scheme, for anyone who wouldn't be confident to manage their own pension investments and drawdown, which is probably at least 90% of RM employees, is definitely an improvement on a straightforward DC scheme. It is likely to pay out far more to an individual member than they would receive over the course of their retirement by buying an annuity with their pension pot from a regular DC pension scheme. If people choose to drawdown from their own pot rather than buying an annuity they have to factor in the risk of their own personal longevity, and so are likely to die with a large sum left in their pension pot, having paid themselves a much smaller pension each year than they could have had. The CDC scheme pools that risk so can pay out far more per year on average.

The only downside is that there may be periods where the scheme pays out a few percent less than the previous year. If people were managing their own drawdown from a DC pension pot then this may be a decision that they would have to take themselves, although in reality how many actually would know when to do that and so risk running out of money in their later years.

It is scaremongering claptrap to refer to it as a Ponzi scheme, which is a fraudulent investment scheme where those who invest at the start are getting good returns but only from the funds invested by later joining members rather than any real investment growth. It is not a Defined Benefit scheme.

Although we would all prefer a DB pension we have to acknowledge that these are few and far between in the private sector now. This is probably the next best thing and members should not be put off from joining, missing out on the very generous employer contribution, by someone who clearly doesn't recognise what a good offering this is.

[TheTrolleyMan]

:crazy:if it’s so good please explain why Dave Fraud & Chris Webb are still in a Final Salary Scheme paid for CWU members .?

[Postie Malone]

:crazy:if it’s so good please explain why Dave Fraud & Chris Webb are still in a Final Salary Scheme paid for CWU members .?

As I Said, a DB scheme would be everyone's preference, but in RM it isn't going to happen.

What is your preference? An ordinary DC scheme? If so, how are you going to maximise the pension that it provides you? Are you planning to buy an annuity with the pot, or manage it yourself? How much of your pot would you take out each year to ensure it lasts whether you live to 70 or 100? What will you do with the amount that you take if your investments perform poorly and fall in value?

Maybe you plan to opt out completely. RM will love that. You will save them over £3,500 per year to employ you. You will be giving away all that free money and another £500 from the tax man? That really sounds like crazy to me.

[SMS1969]

The new scheme will give you some sort of wage, obviously the longer that you are in it the better the wage.You will also get a lump sum from it. It’s silly to miss out on employer and government money, which will happen if you opt out.

[RobertT]

:crazy:if it’s so good please explain why Dave Fraud & Chris Webb are still in a Final Salary Scheme paid for CWU members .?

The CWU final salary pension scheme actually closed to future accrual in September 2018. It's been average salary since then.

You may or not know, that around 90% of DB pension schemes are currently in surplus. The CWU's is one of the other 10% that are in deficit.
They're making additional payments to make up the shortfall and presumably members subs are helping with that.

A collective pension scheme is only really suitable for large workforces, due to economies of scale. I don't know how many the CWU employ, but it's nowhere near enough to make it viable. So until legislation for multi employer CDC schemes comes into force and other companies want to go down that route, it's a non starter for them.

Although as the current scheme is in deficit, you could argue there's a potential case for closure to future accrual.

It's also worth noting that Lionel Sampson, the bloke in the pension briefing who was bigging himself up as being a trustee of the RMPP, which is in a very good financial position.
He's also a trustee of the CWU pension, so hasn't made such a good job of that one!

[redlen]

If people are looking how not so not so great this new Royal Mail pension scheme is, look what the experts say

It is totally erroneous to call it scaremongering to close a debate down from an unqualified individual offering pension advice when there are real concerns with security in retirement

But do not take my word on it as I will supply an objective link from the experts, not personal opinions selling a product

https://www.thisismoney.co.uk/money/pen ... cheme.html


https://www.thisismoney.co.uk/money/pen ... -work.html