So what happens to the contributions

Post by **de-coded** » 26 Oct 2007, 19:55

So for example if someone has made 3 years worth of payments into pension and it now closes to all members where does the monthly contribitions made go.[/b]

Tall Guy · Post by **Tall Guy** » 26 Oct 2007, 20:06

Closes to new members, not all members?

Post by **de-coded** » 26 Oct 2007, 20:11

Are they not proposing it closes to all from next april

Ant Midlands · Post by **Ant Midlands** » 27 Oct 2007, 06:27

Yes they are proposing to close the final salary scheme from april 2008, your pensions will be frozen and we'll all start again on a carear earnings based scheme. The problem is that the monies we've already paid in will be decreased saving them a fortune.

chromium05 · Post by **chromium05** » 27 Oct 2007, 12:50

^^ exactly. This is why I emailed Dave Ward regarding getting an agreement with RM that any worker wishing to withdraw ALL their contributions should be able to.

With the pension being frozen, whatever amount in there will only be worth the same when you retire.

I am 32. I have 3 years contributions in the final salary scheme - my contributions totalling around Â£2000-Â£2300. If the scheme was frozen tomorrow, that money would still be worth Â£2000-Â£2300 in 28 or 33 years time. Which, with inflation, could be the equivilent of Â£50-Â£100 today ( this IS A GUESS - think what a pint cost in 1979 ( I grew up in a pub and think it was somewhere around 15-25p)- and what a pint costs now and you may be able to see what will happen to your money).

k979aaa · Post by **k979aaa** » 27 Oct 2007, 14:42

chromium05 wrote:^^ exactly. This is why I emailed Dave Ward regarding getting an agreement with RM that any worker wishing to withdraw ALL their contributions should be able to.

With the pension being frozen, whatever amount in there will only be worth the same when you retire.

I am 32. I have 3 years contributions in the final salary scheme - my contributions totalling around Â£2000-Â£2300. If the scheme was frozen tomorrow, that money would still be worth Â£2000-Â£2300 in 28 or 33 years time. Which, with inflation, could be the equivilent of Â£50-Â£100 today ( this IS A GUESS - think what a pint cost in 1979 ( I grew up in a pub and think it was somewhere around 15-25p)- and what a pint costs now and you may be able to see what will happen to your money).

This is way the finnal salary should remain not frozen we paid in all the time royal mail did not the goverment took Â£280-Â£300 million a year so we pay twice the royalmail did not pay and the goverment got paid i wonder what Â£300 million a year for ten year's plus interest is in today's money the goverment should pay back what it has stolen.!

Post by **Shiggaddi** » 27 Oct 2007, 15:11

k979aaa wrote:
chromium05 wrote:^^ exactly. This is why I emailed Dave Ward regarding getting an agreement with RM that any worker wishing to withdraw ALL their contributions should be able to.

With the pension being frozen, whatever amount in there will only be worth the same when you retire.

I am 32. I have 3 years contributions in the final salary scheme - my contributions totalling around Â£2000-Â£2300. If the scheme was frozen tomorrow, that money would still be worth Â£2000-Â£2300 in 28 or 33 years time. Which, with inflation, could be the equivilent of Â£50-Â£100 today ( this IS A GUESS - think what a pint cost in 1979 ( I grew up in a pub and think it was somewhere around 15-25p)- and what a pint costs now and you may be able to see what will happen to your money).
This is way the finnal salary should remain not frozen we paid in all the time royal mail did not the goverment took Â£280-Â£300 million a year so we pay twice the royalmail did not pay and the goverment got paid i wonder what Â£300 million a year for ten year's plus interest is in today's money the goverment should pay back what it has stolen.!

What they mean by the pension being frozen means that the benefits accrued will increase in line with inflation each year, and further contributions will go towards the new scheme. We had a WTL which gave examples of people with differing ages, and differing years of service left, and every one shown that the new scheme involves being worse off.

The pension being frozen is exactly what happens if you leave the company. The years of service you have built up increases in line with inflation and is paid when you reach retirement age.

Ant Midlands · Post by **Ant Midlands** » 27 Oct 2007, 15:15

By freezing our pensions RM will wipe 1.6 billion off the pension deficit, thats our money! According to the union this is the equivlent to ten grand apiece.