New pension

[heapsy]

Is there any news regarding the new CDC pension yet?

[Rommagic]

Good question.

[NWpostie]

It doesn't look like it's happening this year

[heapsy]

I tend to agree. Tbh, I'm not even sure the CDC will happen. Last time I read anything about it, it said there were delays with the DWP. But i'd previously read that an unnamed share holder was unhappy with the new arrangements. Kretinsky possibly?

[freespeech]

I tend to agree. Tbh, I'm not even sure the CDC will happen. Last time I read anything about it, it said there were delays with the DWP. But i'd previously read that an unnamed share holder was unhappy with the new arrangements. Kretinsky possibly?

From a selfish perspective the longer the delay the better. I'm off in two years max so the more I can put in the existing scheme the better.....and I don't want another bloody RM pension!

[heapsy]

I tend to agree. Tbh, I'm not even sure the CDC will happen. Last time I read anything about it, it said there were delays with the DWP. But i'd previously read that an unnamed share holder was unhappy with the new arrangements. Kretinsky possibly?

From a selfish perspective the longer the delay the better. I'm off in two years max so the more I can put in the existing scheme the better.....and I don't want another bloody RM pension!

Snap. I'm going in just over 3 years at 60. I've never seen things so bad in nearly 36 years.

[NWpostie]

4 years for me.

[derekm]

I’m sure I read something about the new pension last year and was about Royal Mail not being able to afford it.

[renrag40]

I’m sure I read something about the new pension last year and was about Royal Mail not being able to afford it.

Well if they can't afford the new scheme then that doesn't bode well for the present cash balance scheme because they are going to pay roughly the same into the CDC as they are paying into the cash balance scheme.
The reason they wanted to move to the new CDC scheme was to have certainty of what their liabilities were...... basically they put their share into the pension and if the investments underperformed then that's tough luck for the pensioners and active members of the new scheme...... Royal Mail are off the hook for any shortfall.
My tuppence into the debate is that this new scheme will get off the ground but it won't be with employer contributions of 13.6%........ anywhere between 6% to 10% ........ as long as Royal Mail can crow that the new pension provision is still sector leading then it will be as little as they can get away with ...... sound familiar? T& Cs?

[yubin282]

Delay as long as possible cos it sounds utter crap

[Hyrrokkin]

It is taking ages - yes i know covid,new legislation etc etc

It needs to come in soon or do something else ie DC scheme

[heapsy]

It can take as long as it likes, I'm 99.9% certain I wont be joining.

[Subman]

Opinions please.

A colleague who is presently a member of RMDCP has been told that they are now eligible to join DBCBS.

In general, is the DBCBS a better scheme?

Would it be worthwhile joining DBCBS as they will automatically join the CDC on its introduction.?

[Jaggs]

Opinions please.

A colleague who is presently a member of RMDCP has been told that they are now eligible to join DBCBS.

In general, is the DBCBS a better scheme?

Would it be worthwhile joining DBCBS as they will automatically join the CDC on its introduction.?

I've been in the RMDCP and have decided to stay in it rather than join the cash balance scheme. My reasoning is that I'm prepared to take the investment risk to try and out perform the target of the dbcbs which is contributions plus inflation adjustment each year. Also while I was part time any ot up to full time hours was pensionable where as in the cash balance scheme I believe it is only basic contracted pay that is pensionable.