CWU plans to close final salary schemes while balloting members on Royal Mail scheme closure

Post by **TrueBlueTerrier** » 14 Sep 2017, 15:00

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The Communication Workers Union (CWU) has proposed a major shake-up of its defined benefit (DB) provision, despite threatening industrial action at Royal Mail for planning similar changes, PP can reveal.

The union is proposing to members that the standard retirement age should rise from 60 to 65, while also closing its three final salary schemes - the Union of Communication Workers (UCW) Pensions 2001 scheme, the National Communications Union (NCU) SSS scheme, and the CWU 2000 scheme.

The former two schemes are both closed to new members, but the CWU 2000 scheme was open to all employees of the union as of 31 December last year.

The schemes would be replaced with a career average revalued earnings (CARE) fund, subject to union and employee consultation.

In a briefing document, seen by PP, sent to members dated March 2017, the CWU said its plans would reduce pension costs by £980,000 next year.

The document added: "Over a number of years now, as in virtually every other organisation, the CWU has not been immune to the spiralling costs of pensions and the combined cost of these three schemes in terms of deficits, accrual rates, admin and the benefits due, are no longer sustainable.

"However, unlike most employers, the union remains committed to providing all our employers with an affordable alternative that will still provide decent pensions."

The document added that the CWU hoped for an agreement to be reached and implemented this month.

The proposal comes as the union continues to criticise Royal Mail for planning to close its DB scheme to future accrual, launching a strike ballot last week. The company has been locked in negotiations with the CWU for months over the plans, which Royal Mail said are needed as the scheme will become "unaffordable" from next year, or contributions are estimated to need to rise from 17% to 50% of pensionable pay.

As of 31 December, the union recorded a combined FRS 102 accounting deficit of £19.4m across the three schemes, with assets and liabilities totalling £107m and £126m respectively.

This was higher than at the schemes' last valuations, all dated 31 December 2014, where there was a £13.5m deficit in aggregate. At the time, the UCW scheme had a £13.2m deficit, the CWU 2000 scheme had a £2.9m deficit, and the NCU SSS scheme had a £2.7m surplus.

Last year, the union paid out £2m more in benefits than it received in contributions.

The schemes will all begin a new valuation on 31 December this year.

The union's annual accounts, filed last year, also revealed it had generated £28m from member subscriptions and £800,000 in investment income, yet also posted a year-end deficit of £5.4m and a total deficit of more than £14m.

The CWU had not responded to a request for comment at the time of publication.

slinder123 · Post by **slinder123** » 14 Sep 2017, 17:17

what are they doing increasing retirement to 65 well fk that here comes a big no

Post by **TrueBlueTerrier** » 14 Sep 2017, 17:19

slinder123 wrote:what are they doing increasing retirement to 65 well fk that here comes a big no

This is about the CWU employees Pension. Not the Royal Mail one we are voting on.

fishtank · Post by **fishtank** » 14 Sep 2017, 17:23

slinder123 wrote:what are they doing increasing retirement to 65 well fk that here comes a big no

This applies to CWU employees.
To be honest it's been coming for a while, the three CWU pensions are a mess, should have been consolidated years ago and it's our subs that are filling the holes, money that should be used for union purposes.

heapsy · Post by **heapsy** » 14 Sep 2017, 19:37

I think the CWU have just lost us our argument regard OUR pension.

Post by **RobertT** » 15 Sep 2017, 08:43

heapsy wrote:I think the CWU have just lost us our argument regard OUR pension.

They are at least keeping a DB scheme, but the timing of this announcement is terrible!

sweepster70 · Post by **sweepster70** » 15 Sep 2017, 11:50

RobertT wrote:
heapsy wrote:I think the CWU have just lost us our argument regard OUR pension.
They are at least keeping a DB scheme, but the timing of this announcement is terrible!

This wont affect my vote in the ballot. This has nothing to do with Royal Mail.
I believe they'll be getting the pension we have now, which is a very good db pension. RobertT should know a lot more than me.
They are giving their employees the best alternative pension that they can. We can't say the same for Royal Mail.

Post by **POSTMAN** » 15 Sep 2017, 11:54

How many peeps are in this pension then and how many peeps currently work for the CWU?
Any figures anywhere?

Last year, the union paid out £2m more in benefits than it received in contributions.

Post by **tinkerdil** » 16 Sep 2017, 07:37

RobertT wrote:
heapsy wrote:I think the CWU have just lost us our argument regard OUR pension.
They are at least keeping a DB scheme, but the timing of this announcement is terrible!

This is not breaking news.The CWUs intention has been known for some time. Rather a strategic reminder I would suggest.

Post by **RobertT** » 16 Sep 2017, 08:55

tinkerdil wrote:
RobertT wrote:
heapsy wrote:I think the CWU have just lost us our argument regard OUR pension.
They are at least keeping a DB scheme, but the timing of this announcement is terrible!
This is not breaking news.The CWUs intention has been known for some time. Rather a strategic reminder I would suggest.

It's the first I've heard about it to be honest. But i know what you're saying!

Post by **cloherty1976** » 16 Sep 2017, 10:51

RobertT wrote:
tinkerdil wrote:
RobertT wrote:
heapsy wrote:I think the CWU have just lost us our argument regard OUR pension.
They are at least keeping a DB scheme, but the timing of this announcement is terrible!
This is not breaking news.The CWUs intention has been known for some time. Rather a strategic reminder I would suggest.
It's the first I've heard about it to be honest. But i know what you're saying!

Why don't they offer the WInRs pension they think Royal Mail should go for,so in future years we could see how the pensions game went?

heapsy · Post by **heapsy** » 16 Sep 2017, 17:17

cloherty1976 wrote:
RobertT wrote:
tinkerdil wrote:
RobertT wrote:
heapsy wrote:I think the CWU have just lost us our argument regard OUR pension.
They are at least keeping a DB scheme, but the timing of this announcement is terrible!
This is not breaking news.The CWUs intention has been known for some time. Rather a strategic reminder I would suggest.
It's the first I've heard about it to be honest. But i know what you're saying!
Why don't they offer the WInRs pension they think Royal Mail should go for,so in future years we could see how the pensions game went?

A bit like putting your money where your mouth is.

Good idea.

Martin Walsh · Post by **Martin Walsh** » 23 Sep 2017, 18:39

The CWU have 3 schemes , one ex UCW scheme which is no contributory. The likes of Alan Johnson perfered to remain in this scheme rather than take his MP one. Than you had the Ex NCU one and than a new scheme name Wimbledon.

The problem With 3 pension schemes you have combined costs of administering 3 pension reviews etc.

With a reducing membership based the CWU have engaged their staff who are represented by the GMB and are proposing one pension scheme for all but which is a defined benefit care scheme which is what Royal Mail are proposing to close in Royal Mail. This has been reported widely under the CWU redesign strategy so a bit of a non story.

Spedley · Post by **Spedley** » 23 Sep 2017, 20:06

Actually quite old news "In a briefing document, seen by PP, sent to members dated March 2017".