LTB61 PENSIONS UPDATE

[Geezer]

Letter to Branches


No: 61/12 Ref: 67000 3rd February 2012

TO: ALL BRANCHES WITH POSTAL MEMBERS


Dear Colleague

PENSIONS UPDATE

Further to LTB 1078/11 issued on the 20th December, the Union has continued regular dialogue with the government and the Royal Mail Group covering the full range of pension issues. The purpose of this LTB is to update Postal Branches on some of the key activities that are taking place.

CWU Policy

In our discussions the Union has set out to both government and Royal Mail our policy positions and in particular the assurances we require before the pensions solution is implemented. We have also had separate discussions with Royal Mail over our concerns on the new Defined Contributions Scheme, which applies for new entrants who joined after April 2008.

Secondary Legislation

In the last week, the Union has been provided with the Statutory Instruments of Secondary Legislation, due to go before Parliament, which subject to state aid clearance will implement the pensions solution. The Secondary Legislation is very detailed and incorporates the mechanics and rules of how the new government scheme will operate, how the split of assets and liabilities will be undertaken and the various safeguards required to protect members’ pension benefits. The legislative documents are currently with our lawyers and independent pension actuaries. Further dialogue will take place as appropriate.

Ongoing Work Streams

In our meetings the Union is regularly updated on the various work streams that are taking place in the background to support the pension changes that are due to take place on the 1st April 2012, subject to state aid clearance.

As part of this a team from CWU Headquarters has visited the Pensions Administration Centre in Chesterfield, to observe the work required to facilitate the distribution of members’ future pensions information.


A key work stream is the split of assets and liabilities at the point of transfer. This is about ensuring that the remaining RMPP Scheme is fully funded going forward, with not just the right level of assets - but also the right quality. Although the Pensions Trustees have a legal responsibility to oversee this work, the Union has also engaged our own independent actuaries, who we want to also verify the process. This work stream also covers the further split of assets and liabilities as part of the sectionalisation of the Royal Mail and POL schemes going forward.

Governance

The make up of the governance group for the new government scheme has been agreed and the CWU will have two nominees on this group. Given that this scheme is unfunded (i.e. no investment decisions required) this governance group will not have the same level of responsibilities as a normal trustee board. An independent Chair, Alan Pickering, has been appointed to lead the governance group.

Communications

The Pension Trustee Board has shared with us the communications they are planning in the coming weeks to explain what the government’s pension solution means to members of the scheme. We are also participating in a wider Stakeholder Forum that is discussing the need for accurate and timely information.

Separate from the above a CWU pensions pamphlet is being produced and this will set out a broader position covering the full range of pension issues.

Next Steps

You will see from the aforementioned that there is a lot of activity taking place on both the detail of the pension solution and the broader issues involved.

It appears there is now a high degree of confidence that the decision on state aid will be finalised in time for the pension solution to be implemented in April 2012.

In the meantime, our meetings and the activities outlined in this LTB will intensify over the next few weeks.

A further report will be issued in due course.

Yours sincerely


Dave Ward
Deputy General Secretary (P)

[Cut Off King]

Its a bit late in the day to fight for our pensions

You gave up the game in 2008 !