NATIONAL PENSIONS BRIEFING REPORT

[pcb]

Ok as soon as I get a copy.

[k979aaa]

So 10.5 hour's saturday for 40 hour's over the week no overtime pay hope the scab bastard's in my office are listening.

[andy2007]

I have not recoeved any paperwork but had telephone conversation straight after the meet.

Ok mate, let us know if you get it! will be interesting to compare. My reps forward me any briefing reports they do. Since i've been posting on here i must have posted 9 or 10 national briefing reports. Never seen one from another branch. Not very good comms!

We rarely get anything, till a few days after we read it on here. And it looks like we are not the only ones getting information late, if at all.

That's why you in particular, have been such a God send during the dispute.

[terrace]

A Pension holiday was taken for so many years ,it doesn't take a brain surgeon to work out there was a going to be a shortfall in the Pensions.Whoever the accountant was should have foreseen this .During this period of non pension contriburions by Royal Mail the accountant or whoever should have made a worst scenario calculation and taken the appropriate action.Royal Mails lack of action until it's too late is the problem.
Again it's the Postal workers who are going to suffer not Crozier and Leighton who most probably going to retire at 60 with a massive pension .Why should we suffer through no fault of our own.

[jemima]

The RM accounts (see ftp://ftp.royalmail.com/Downloads/publi ... evised.pdf) give an idea of the scale of pension fund payments in relation to the total people costs. RM has 184,000 employees and the total people costs are £6,145 million, so pension costs represent about 12% of people costs.

"Pension costs (pre-exceptionals) have increased by over 36% from £529m to £722m. Of this £193m increase, £16m relates to past service. The balance, some £177m, mainly relates to the increased cost of employing members of the schemes, principally due to an allowance for increased life expectancy and lower long-term interest rates.
The balance sheet pension deficit has decreased from £5,588m in March 2006 to £4,985m. The decrease in the deficit of £603m principally relates to an actuarial gain of £340m and net pensions interest of £199m. The majority of the actuarial gain arose due to investment returns on the schemes’ assets being in line with market performance and therefore higher than the long-term expected rate of return. This gain is recorded in the statement of recognised income and expense. The net pensions interest reflects the long-term expected rate of return on the schemes’ assets, less the unwinding of the discount on the schemes’ liabilities. Although liabilities are higher than assets, the expected rate of return on these assets (biased toward equities) is substantially higher than the discount rate for liabilities (high quality corporate bond rate) resulting in a net interest credit. This interest is recorded in the income statement after profit before financing and taxation.
As part of the new funding package, the Group established £1bn of investments in escrow shortly before year end as security for the Royal Mail Pension Plan, in support of the 17 year deficit recovery period from 31 March 2006.
Regular pension contributions increased by over 58% from £343m to £543m. This additional £200m cash outflow has been principally driven by the regular rate of employer contributions for the Royal Mail Pension Plan increasing from 12.6% to 20.0% of pensionable pay, effective from the beginning of the current year. Key elements of this increase are an allowance for increased life expectancy and lower expected long-term investment returns. A rate of 12.6% applied throughout the prior year. The regular rate of employee contributions for the Royal Mail Pension Plan remains unchanged at 6.0%.
Deficit recovery payments by the Group more than doubled, increasing by £130m (115%). Of this increase, £68m was due to the timing of the payments made, with the balance (£62m) principally arising as a result of the latest full actuarial valuation of the Royal Mail Pension Plan. There have been no employee deficit contributions. The Group has been contributing an average of some £140m per year to fund the deficit in the Royal Mail Pension Plan, lower in 2005-06 due to the timing of payments made. This will increase to an average of over £260m per annum from the beginning of 2007-08."

Any changes in the life expectancy of posties should be easy to establish. RM should have the data. They should have the data for managers as well.

Whilst they're quite right to want to allow for possible "lower expected long-term investment returns" (no doubt they'll tell the Union negotiators exactly what they mean by this; an independent market analyst could be asked to check RM's figures), the various new pension schemes that have been proposed can't be expected to alter the performance of the fund!

Pension fund accounts are at ftp://ftp.royalmail.com/Downloads/publi ... ts2007.pdf. This is interesting reading and includes a list of the companies invested in.

"On this basis, the 2006 valuation report showed that the value of the Plan’s assets was £21.9 billion, but that this was £3.4 billion less than the Plan’s accrued liabilities. This equates to a funding level of 86.7% (compared to 82.6.% in 2003, an improvement of 4.1%). As the asset cover was less than 100%, the Trustee was required to establish a recovery plan aimed at restoring the position to 100% asset cover. The Trustee has succeeded in agreeing with Royal Mail to eliminate the shortfall faster than in the past - in 17 rather than 40 years. The 17 year recovery period commenced on 1 April 2006.

It doesn't say why the time allowed to pay off the shortfall was changed from 40 to 17 years. This decision must be the main driver for the increased contributions to be paid by RM. I suspect that posties' lifetimes have little to do with it.

[jafferpants]

A Pension holiday was taken for so many years ,it doesn't take a brain surgeon to work out there was a going to be a shortfall in the Pensions.Whoever the accountant was should have foreseen this .During this period of non pension contriburions by Royal Mail the accountant or whoever should have made a worst scenario calculation and taken the appropriate action.Royal Mails lack of action until it's too late is the problem.
Again it's the Postal workers who are going to suffer not Crozier and Leighton who most probably going to retire at 60 with a massive pension .Why should we suffer through no fault of our own.

The actuarys did make calculations RM chose to ignore them as is their right

[jafferpants]

HAY LOVEJOY re the 60 day consultation did you notice out of D Wards own mouth the words, "NO CHANGE TO THE PENSION SCHEME IS NOT SUSTAINABLE" He's trying to tell you something, still theres none so blind as those that wont see!

[lovejoy]

HAY LOVEJOY re the 60 day consultation did you notice out of D Wards own mouth the words, "NO CHANGE TO THE PENSION SCHEME IS NOT SUSTAINABLE" He's trying to tell you something, still theres none so blind as those that wont see!

jafferpants i'm just posting a report i received. Anyhow just because no change is not sustainable doesn't mean it has to as drastic as the current proposals!!!

I personally think what Dave Ward is trying to do is present an honest view to the membership and I think as the consultation goes forward that will become apparent

[jafferpants]

HAY LOVEJOY re the 60 day consultation did you notice out of D Wards own mouth the words, "NO CHANGE TO THE PENSION SCHEME IS NOT SUSTAINABLE" He's trying to tell you something, still theres none so blind as those that wont see!

jafferpants i'm just posting a report i received. Anyhow just because no change is not sustainable doesn't mean it has to as drastic as the current proposals!!!

I personally think what Dave Ward is trying to do is present an honest view to the membership and I think as the consultation goes forward that will become apparent[/qu

your missing the point. In other post's you been saying they have a 60 day con period (no pun intended) in wards letter he's saying you must accept the pension cant stay in it's present form., and thats before they have consulted Wake up and smell the coffee. if ward wants to present an honest view it's easy . just say these words "your final salary scheme is going " now how hard is that

[dvbuk55]

There are a number of points which either I have missed or are not present in the briefing.

The final salary scheme will be uprated by the RPI which will mean something between 3/4% per annum but it isn't clear WHEN the RPI will be applied - i.e. 1 Jan Annually, 1 Apr Annually or when at its lowest.

The fact that the second, inferior scheme, requires you to work to 65 could be a double edged sword - the increase in pay between 60 and 65 will work in your favour, should you survive, there is no figure on the actuarial loss either as a lump sum or % decrease should you retire early. In reality of course you will be drawing pension for fewer years if you retire at 65. There is also the question of whether the career average will commence at the start of service or only at the start of the new pension scheme - there is of course a considerable saving if it is start of service for RM.

These points may have been covered but I haven't seen them.

[arsenalbob]

i'm under the impression that the career average scheme is the average beween april 2008 up until you retire and the benefits you've accumulated under the final salary scheme will still stand up to april 2008 and then the two of them will be lumped together, the way i see it is if you're in your mid fifties now it s not too bad, but if you've still got 20 plus years to go you will lose out quite a bit

[strangler]

Good points here, anyone know? All we do know is we`re screwed either way just a question of by how much.

[Sandyman]

Tonight's e-mail from John Colbert says:

"A message from Billy Hayes, General Secretary and Dave Ward, Deputy
General Secretary (Postal)

Dear Colleague,
We have been advised by Royal Mail that the
60-day consultation process on proposals for pension reform will
commence from the 14th November and conclude on the 16th January.

Following the consultation period, Royal Mail's intention is that any
subsequent changes to pension arrangements will be introduced in April
'08.

Through our agreed Joint Statement the Union is supporting pension
reform as part of the consultation process.

We are totally committed to the most informed debate possible throughout
the consultation period and we will be undertaking regional seminars and
communicating directly to CWU members on all pension issues.

It is also important we involve our members in the consultation process.
Your views will inform the further discussions at the end of the
consultation period.

As previously reported, pensions is not part of the Pay and
Modernisation agreement. Pensions are being dealt with as a group-wide
issue. All CWU members will be balloted separately on final proposals
following the consultation. "

[strangler]

As previously reported, pensions is not part of the Pay and
Modernisation agreement. "

Jesus, this lie is getting bandied about as much as the RM one about "being available to explain to the union about the challenges that face the business".

[dvbuk55]

As previously reported, pensions is not part of the Pay and
Modernisation agreement. "

Jesus, this lie is getting bandied about as much as the RM one about "being available to explain to the union about the challenges that face the business". [/quote"]

Really the negotiations for pay and pension could be summed up quite simply:

RM: Were giving you F*ck all money and ripping your pension rights off you

CWU: OK!