Royal Mail possible privatisation could dictate pensions future
http://www.professionalpensions.com/821674
An announcement on the partial privatisation of Royal Mail could dictate the future of the company’s defined benefit pension scheme, the Communication Workers Union says.
Business minister Lord Mandelson will appear before the business and enterprise select committee today to discuss the future of the economy and the impact of the credit crunch.
He is expected to address the issue of privatising part of Royal Mail and will also take questions regarding the current economic climate.
A CWU spokeswoman said Mandelson wanted to privatise the company when he was in parliament 10 years ago but did not get approval to do so.
According to Royal Mail’s website the company has a shortfall of £3.4bn to pay in contributions to the end of March 2006.
CWU said it would be difficult to find a company to take on another with such a huge pension deficit as it would pose a massive risk to the acquiring company’s balance sheet.
CWU told PP last month it was in constant negotiations with Royal Mail over the fate of its pension scheme, which was closed to new accrual on March 31.
Employees who joined the company after April 1 will qualify for a defined contribution plan once they have completed one year of service – and the firm will launch a new plan in April next year.
On November 14 2007, Royal Mail opened a formal consultation into the proposed changes and by the time the period closed on January 16 2008 more than 35,000 submissions had been received.
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Royal Mail possible privatisation could dictate pensions fut
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TrueBlueTerrier
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Royal Mail possible privatisation could dictate pensions fut
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Royal Mail possible privatisation could dictate pensions fut
Not one of which supported RM's proposals and which they completely ignored. :cfo :lfoTrueBlueTerrier wrote:Royal Mail possible privatisation could dictate pensions future
http://www.professionalpensions.com/821674
On November 14 2007, Royal Mail opened a formal consultation into the proposed changes and by the time the period closed on January 16 2008 more than 35,000 submissions had been received.