Pension automatic enrolment to the pension scheme

[Martin Walsh]

In line with the new pension laws on automatic enrolment 16 000 employees who are not in the pension scheme will be automatically enroled into the defined contribution scheme from February next year and will pay 1% pension contributions and Royal Mail will pay 1% pensions contributions. After 12 months it will go up to 3% pension contributions and 5% employer contributions. They can also opt to go up to the higher figure of 5% contributions and 7% contributions.

The scheme they will be automatically enrolled into is the scheme which was opened after the 2008 closure of the Royal Mail Pension shceme. Anyone employed prior to this date will be in the old scheme. In the new scheme there are currently 14 577 memeber and it is a vastly inferior scheme.

[labbloke]

Anyone employed prior to this date will be in the old scheme. In the new scheme there are currently 14 577 memeber and it is a vastly inferior scheme.

Shameful indeed, two tier workforces were never the way to go. One day a tipping point is reached and if animosity remains then everyone is brought down to the inferior level.

[POSTMAN]

Thanks for that Dingo,just a quickie,is it not now possible for newbies to opt out totally like they can now?

[RobertT]

Shameful indeed, two tier workforces were never the way to go. One day a tipping point is reached and if animosity remains then everyone is brought down to the inferior level.

We've had a two tier pension scheme for a long time or more to the point with Sections A, B, C and the post 2008 defined contribution scheme we've effectively got a four tier scheme!

just a quickie,is it not now possible for newbies to opt out totally like they can now?

New recruits to the pension scheme are automatically enrolled but then have the right to opt out if the want to. But will then be auto enrolled again every three years.

[steekvey]

Thanks Dingo, Ive been looking for info on this as quite a few of our members have been asking about it. The only info I could find was in the last newsletter from Zurich which advised that the Royal Mail auto enrollment would begin in November http://www.zurich.co.uk/royalmaildcplan ... onnews.htm" onclick="window.open(this.href);return false; . Do you know if the union or RM going to produce any official comms on this which we can distribute to those that are enquiring.

Cheers..

[Martin Walsh]

They were initially going to auto enrol from November but due to the Christmas casuals they have now agreed to do it from February. They will be comms going out to those 16 000 members who will be automatically enrolled from February .

Of course 1 percent employee and employer contributions or even the 3 percent and 5 percent will not give anyone a decent pension.

[steekvey]

They were initially going to auto enrol from November but due to the Christmas casuals they have now agreed to do it from February. They will be comms going out to those 16 000 members who will be automatically enrolled from February .

Of course 1 percent employee and employer contributions or even the 3 percent and 5 percent will not give anyone a decent pension.

Thanks...

[goldpark]

HI Dingo hope you can help.....I am 62 with my pension, still working, not in pension fund hoping to take EVR next year can I opt out of new pension

[RobertT]

HI Dingo hope you can help.....I am 62 with my pension, still working, not in pension fund hoping to take EVR next year can I opt out of new pension

Yes!

[fishtank]

A good guide to auto-enrolment...

http://www.dwp.gov.uk/docs/auto-key-fac ... ooklet.pdf" onclick="window.open(this.href);return false;