CWU : MAJOR PROGRESS ON ROYAL MAIL GROUP PENSIONS

[POSTMAN]

MAJOR PROGRESS ON ROYAL MAIL GROUP PENSIONS

Royal Mail Collective Pension Plan – Outcome of Legal Consultation

Further to LTB 396/21 dated 17th September 2021, ( viewtopic.php?f=27&t=101960&p=963146) I am pleased to inform Branches that following Royal Mail’s consultation of its employees in respect of a new Collective Pension Plan, to be known as the “Collective Plan”, a positive outcome has been announced today.

Essentially, based on the feedback received via the consultation, Royal Mail, CWU and Unite agree that the Collective Plan is the right pension plan for employees and Royal Mail intend to go ahead with the changes proposed. This is a positive development and means that together with Royal Mail we are another step closer to launching this new collective pension scheme for the benefit of our members.

Royal Mail Communications to Employees

The following Tripartite Statement has been agreed between CWU, Unite and RMG:

“Together we’ve designed a new pension plan that gives our people two things: a cash lump sum and a wage in retirement. The consultation on the pension changes is now complete and we’ve considered people’s feedback. We’re excited that this brings the Collective Pension Plan a step closer to launch.”

Mick Jeavons RMG Chief Financial Officer
Terry Pullinger CWU DGS(P)
Gary Sassoon-Hales Unite CMA National Representative

In addition, Royal Mail is publicising this milestone decision via its various media channels, together with a home mailing.

What Happens Next?

To make the Collective Plan a reality some further changes to the law are required. There is anticipation that these final changes to the legislation should be completed by August as all parties are currently working with government on this important matter. Once the details are finalised we can then apply to the Pensions Regulator to open our scheme. After the application process has been completed we should be able to deliver the new scheme in the latter part of this year. Branches and members will be informed when we have an agreed launch date.

In closing, I would like to advise Branches that members can access information in regard to the Collective Plan via the following RMG link:
www.myroyalmail.com/collective-plan.

[2yearpostie]

This has got **** up written all over it.

We are gonna end up with nowt

[greengiant]

Will we be delivering ourselves a "Were you missold a Collective Pension Plan Scheme?" D2D in a few years?

[heapsy]

Thing I'm most pissed off about is the move to 67 for the NRA. What a joke.

[yubin282]

3/80 of your pensionable pay.....

Here comes Bullinger with our latest pay cut.

[hans solo]

Will we be delivering ourselves a "Were you missold a Collective Pension Plan Scheme?" D2D in a few years?

we should have been out on strike to keep our original plan
our union are now expert at conning the membership

[Jaggs]

Will we be delivering ourselves a "Were you missold a Collective Pension Plan Scheme?" D2D in a few years?

we should have been out on strike to keep our original plan
our union are now expert at conning the membership

The time for that would have been 2008 or whenever it was new starters got moved to defined contribution plans. The workforce was split on pensions then so why would anyone in the post 2008 scheme which is probably about 80% in our office strike to save your better terms and conditions

[heapsy]

Will we be delivering ourselves a "Were you missold a Collective Pension Plan Scheme?" D2D in a few years?

we should have been out on strike to keep our original plan
our union are now expert at conning the membership

The time for that would have been 2008 or whenever it was new starters got moved to defined contribution plans. The workforce was split on pensions then so why would anyone in the post 2008 scheme which is probably about 80% in our office strike to save your better terms and conditions

That's how they got the changes through in 87. Current staff were unaffected, only the new staff ended up in what we now know as section C, formerly POPS.

[renrag40]

They got changes through in 2008 exactly the same way they did in 1987, 2010, 2014 and 2018........ they presented it as a fait complait and the union did not stop it from happening or to be more accurate, could not stop it from happening.
On every occasion, there was no ballot of the membership to agree the changes to pension provision negotiated by the union. It has always been couched in terms of........ this is the best deal we could get in such an adverse situation...... so like it or lump it.
On each occasion the pension provision has been been diluted and the value of the pension provision reduced while at the same time allowing RM to reduce their future liabilities to providing these pension commitments.
RM has been perfectly consistent over the last 35 years ........ if they can reduce their commitment to future pension liabilities they will. This will not change in future. In 5 or 10 years time they will be back to say they cannot afford to contribute 13.6% of pensionable pay. In fact there has already been grumbling from activist investors questioning the contribution level of 13.6% when the legal minimum employer contribution level is 3%.
So learning from history would tell new starters in their 20s and 30s to contribute the maximum they can to this new scheme but do not rely on it to still being the RM pension they will be paying into when they retire. If you can afford to contribute to AVCs and/or a private pension then do it.... and the earlier the better.

[heapsy]

Agreed. I would rather RM paid less in if we could have had the NRA at 60 in return. 67 is a complete joke.