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Our union are doing their best but...

07 Nov 2018, 16:38

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https://www.ipe.com/countries/uk/uk-government-publishes-cdc-consultation-based-on-royal-mail-plan/10027713.article
The CWU are plainly doing their best for us long term pension wise.
Is this CDC scheme the right one and better than others out there?
It appears to me the elephant in the room is the possibility that this CDC pension can go down as well as up "in Payment", providing no certainty for financial planning.
The plus is that rather than just a lump sum that does not maintain it's value at all with inflation rises, at least it provides an income.
However, there may have been other choices.
Individual postal members will have to decide, whether to go with this CDC scheme, or invest in some other form of pension.
I thank our union, for at least attempting provision in retirement, only time will tell if this type of scheme is right (CDC)
(A small note, the current DBCBS provides for a death in service lump sum of 2 times pensionable pay + 4 times for your older RMPP pension, once CDC comes in this reverts to 4 times pensionable pay)
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Our union are doing their best but...

07 Nov 2018, 17:03

Maybee, but the union done zilch when RM didn't pay ANY contributions into the pensions for thirteen years and they had nearly double the membership then. :hmmmm :hmmmm :hmmmm

Our union are doing their best but...

07 Nov 2018, 17:07

Navalron wrote:Maybee, but the union done zilch when RM didn't pay ANY contributions into the pensions for thirteen years and they had nearly double the membership then. :hmmmm :hmmmm :hmmmm

It was said at the time, that it was illegal to make payments into a scheme that was in surplus by the amount it was. It would have been a good idea, but was not allowed.

Our union are doing their best but...

08 Nov 2018, 07:02

Back in the day, surpluses weren't allowed in pension schemes, hence why RM initially started the payment holiday. But by the time they restarted contributions the scheme was heavily in deficit. This article gives more info.
However those liabilities were taken over by the government in 2012.

The reason the RMPP was closed to future accrual this year and we are now possibly looking at a CDC scheme, is down to RM's reluctance and/or inability to provide and fund a decent post 2012 DB scheme for it's workforce.

Our union are doing their best but...

08 Nov 2018, 16:51

stephen500 wrote:The CWU are plainly doing their best for us long term pension wise.

I can't believe that isn't sarcasm.

Our union are doing their best but...

09 Nov 2018, 21:35

The Union sold out in 2007 when we went on strike and they knew Royal Mail's plan to close the DB pension but de-linked it to the agreement. Lo and behold Royal Mail decided to close the scheme and from 2008 all existing members were put into an inferior DB scheme. New entrants were put an absolutely crap DC scheme. During the 2010 strike the Union didn't settle the issue and came out with a vague promise to talk all the while less and less people paying in eventually led the scheme being unsustainable. I really feel for the peole who started after 2008 as they probably will have to work for ever.

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