Truly shocking and Royal Mail's sleight of hand

Post by **stephen500** » 19 Sep 2017, 16:38

I was looking today at Royal Mail's pension proposal. Naturally I started off looking at mine. No great surprise or great loss. Then I decided to have a look at pensions for those aged 30 and 40 with much less service and I was truly shocked. Below each proposal/illustration RM appear to use a sleight of hand. They suggest for example that a 30 year old with 10 years pensionable service who is paid £25,000 a year COULD see over a 20 year payment period (65 to 85) an increase in payments of £29,000 in total at an extra £1,100 per year and an increased lump sum. This 30 year old thinks he is now better off compared to Rm's original proposal. Well he is in for a shock. That 30 year old will lose compared to what he would have had in section "C" (his current pension) £7,600 per year off his current pension and £22,700 off his lump sum. Or over the same 20 year payment period they reference (65 to 85) £174,700 less in total benefits. Giving you back £29,900 is chicken feed. The 40 year old with 20 years service is not as bad off, but he still stands to lose a lot of money over the 20 year reference period (65 to 85). In pure cash terms, to save the same amount of money lost this 30 year old retiring at 65 would have to save £95 per week, just to have the same benefits he will lose once section "C" closes in 2018. Shocking.

Acca Dacca · Post by **Acca Dacca** » 19 Sep 2017, 17:01

How many 30 year olds will even have 10 year pensionable pay in DB scheme in 2018 given it closed in 2008 for new members

Post by **stephen500** » 19 Sep 2017, 17:08

Acca Dacca wrote:How many 30 year olds will even have 10 year pensionable pay in DB scheme in 2018 given it closed in 2008 for new members

The do not mean the current DB scheme, this is a new one, combined with section "C"

k979aaa · Post by **k979aaa** » 19 Sep 2017, 17:11

Acca Dacca wrote:How many 30 year olds will even have 10 year pensionable pay in DB scheme in 2018 given it closed in 2008 for new members

If you started before the 1st of April 2008 ten years by next April!

Acca Dacca · Post by **Acca Dacca** » 19 Sep 2017, 17:24

stephen500 wrote:
Acca Dacca wrote:How many 30 year olds will even have 10 year pensionable pay in DB scheme in 2018 given it closed in 2008 for new members
The do not mean the current DB scheme, this is a new one, combined with section "C"

My point is most 30 year olds in RM next year are most likely to be in DC scheme already

Shocking its taken almost 10 years for union to question why we have a split workforce with inferior and superior schemes and only because the superior is closing

Still YES to save conditions and pay but feel like union sold me down river in 2008 as a DC member now

They are going on about the proposal RM are offering as being a disgrace and will still make us poor in retirement yet were happy letting us DCers have a WORSE pension than proposed for past 10 years!

Pidleypoo · Post by **Pidleypoo** » 19 Sep 2017, 20:02

So I started 10 years ago this week and I'm going to lose out on thousands per year.
One of a few reasons I've voted yes.
Also I don't do overtime ( I am full time ) so the 25000 mark means earn less than that and would I lose more ?.