LTB:RE: Pensions : Fund Valuation : 8.4billion

[POSTMAN]

Dear Colleague,

RE: Pensions – Fund Valuation

Further to LTB 605/10 in which we highlighted the continuing relevance of the union’s pension document “Time to Deliver – CWU Solution” and in particular the use of a 40 year repayment schedule alongside a Crown guarantee.

The Postal department / CWU HQ has now been informed that the Royal Mail Pension Plan Trustee are intending to write to all pension scheme members this week informing them of the up to date position regarding the pension scheme valuation 2009 and the size of the pension fund deficit (please see attached letter).

From the content of the letter branches will note that the scheme’s valuation at 2009 is reporting a deficit of £10.3billion although this has been reduced as at the 31st March 2010 to £8.4billion. In dealing with the deficit the trustees have reached an agreement with Royal Mail in respect of on-going funding arrangements and the repayment of the deficit.

Finally, reference is also made to the Pensions Regulator and that the agreement referred to above, between Royal Mail and the Trustee, will now be subject to a formal review by the Regulator.

Any enquiries regarding this LTB please contact the DGS (P) Department on 0208 971 7295 quoting LTB 653/10.

Yours sincerely

Ray Ellis
Acting Deputy General Secretary (P)

[Geezer]

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