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DC to CDC optional

02 Apr 2019, 15:43

I thought the initial information given was that DC members would automatically be enrolled in the CDC scheme when it is (now likely) introduced.
However the following indicates this has changed or am I wrong in assuming Royal Mail will keep the DC scheme open & give the option of choosing either.

Quote/edit from blue shirts jimallen post;

"And of course, we agree that all of us should be on the same pension scheme – but our mates on the lousy DC scheme don't need to join us in a
risky CDC scheme either!"

How will new 'collective' pensions work? Royal Mail.....
https://www.thisismoney.co.uk/money/pen ... -work.html

EDIT;
"We know that many employers and members are happy with their current defined benefit or defined contribution arrangements.

'We are simply looking to provide a further option where there is demand for it.

'Members will also obviously have the right to opt out of a CDC scheme if they wish, as they do for any occupational pension scheme – although we would strongly discourage this as it would not generally be in an individual’s best interests.'

DC to CDC optional

02 Apr 2019, 16:22

I think you're clutching at straws at bit here to be honest!

I appreciate why some people might want an individual DC alternative, and you could argue that we should be given the choice. But all the literature from RM & CWU has said it's one scheme for all, most recently here, where it says:

This consultation follows an agreement reached between Royal Mail and the CWU in February 2018 to pursue a CDC pension. We both agreed that a CDC pension would meet our mutual objectives of providing sustainable, affordable and secure future retirement arrangements for all employees.


The quotes you mention are from the government!
The RM & CWU have jointly decided to bring in CDC for all employees, and the union membership voted for it!

Therefore I think opting out of CDC would mean opting out of a RM pension altogether, and turning down a lot of money.

DC to CDC optional

02 Apr 2019, 18:17

RobertT wrote:I think you're clutching at straws at bit here to be honest!

I appreciate why some people might want an individual DC alternative, and you could argue that we should be given the choice. But all the literature from RM & CWU has said it's one scheme for all, most recently here, where it says:

This consultation follows an agreement reached between Royal Mail and the CWU in February 2018 to pursue a CDC pension. We both agreed that a CDC pension would meet our mutual objectives of providing sustainable, affordable and secure future retirement arrangements for all employees.


The quotes you mention are from the government!
The RM & CWU have jointly decided to bring in CDC for all employees, and the union membership voted for it!

Therefore I think opting out of CDC would mean opting out of a RM pension altogether, and turning down a lot of money.


Hi Robert, I think you may have misinterpreted my post. I am indifferent as to whether RM close the DC scheme as that is what I thought would happen anyway. I then assumed I would be transferred to CDC automatically & for my remaining years (est. 2-3). I had no intention of opting out (unless CDC was delayed & I only had a year to go)

On reading the post by Jimallen "mates on the lousy DC scheme don't need to join us in a risky CDC scheme either!" I wondered what source led him to write that, hence I read the "This is money" article which I probably have read out of context i.e. "......and members are happy with their current defined benefit or defined contribution arrangements.... We are simply looking to provide a further option.
But I am curious by "jimallens' " source.

DC to CDC optional

02 Apr 2019, 18:42

Maybe you should ask him.

DC to CDC optional

02 Apr 2019, 19:07

RobertT wrote:Maybe you should ask him.


I have asked for clarification.

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