Royal Mail have issued an RNS with the following updates.https://www.investegate.co.uk/royal-mai ... 41536109Y/Pensions
· Royal Mail and the CWU should commit in principle to the future introduction of a Collective Defined Contribution (CDC) scheme with a Defined Benefit element.
· To support the introduction of a CDC scheme for all, Royal Mail and the CWU should establish a Pensions Forum. The Forum will have responsibility for lobbying the Government to make the necessary legislative and regulatory changes so that a CDC scheme can be established, and for overseeing its governance.
· In the meantime:
o For members of the Royal Mail Pension Plan (RMPP), Royal Mail should implement - from 1 April 2018 - a Defined Benefit cash balance scheme on the terms already proposed by the Company.
o In addition, existing Royal Mail Defined Contribution Plan (RMDCP) members with five years' or more continuous service in the standard section of RMDCP should have the option of joining the Defined Benefit cash balance scheme.
o Royal Mail should auto-enrol current and future members of RMDCP to the top tier of contributions (10% from the Company and 6% from the member).Pay and the working week
· From April 2017, an increase of 2.6% including base pay, overtime and allowances.
· From April 2018, an increase of 2% to base pay.
· During 2018-19, a one hour reduction to the working week (currently 39 hours) on the condition that Royal Mail and the CWU work together on a range of initiatives, including delivery methods trials, automated hours data capture and later delivery times. Delivery times
· Last delivery time should move back by 30 minutes to 3.30pm in urban areas and 4.30pm in rural areas.
Royal Mail and the CWU working more closely to advance the Agenda for Growth objectives
· Royal Mail and the CWU need to work more closely together to improve working culture.
· Review the Agenda for Growth agreement in 2019, as planned.