2018 Pension Review update issued by Royal Mail

The 2018 Royal Mail Pension Review has been updated by the postal operator.

Royal Mail said in a statement, “We have had extensive talks with our unions, Unite/CMA and the CWU, on a sustainable and affordable solution for retirement benefits for Plan members after 31 March 2018, when the Plan in its current form will close to future accrual.

“The Company is now offering members a choice between a) a Defined Benefit scheme and b) a Defined Contribution scheme, set up as new sections of the Royal Mail Pension Plan (the Plan).

“The Company understands that Unite is planning to hold a consultative ballot1 of its members on this proposal, as it believes that this is the best available deal for Plan members and a significant improvement on the Company’s original Defined Contribution proposal.

“Royal Mail has also offered this improved proposal to the CWU, making it available to all Plan members.

“The Company expects that the overall cost of the proposal will be funded within its current £400 million annual pension contribution. Royal Mail believes that the risk to the Company of the proposed Defined Benefit cash balance scheme would be materially lower than under the current Plan and is a manageable risk for us.”

Royal Mail added that it expects that the overall cost of the proposal will be funded within its current £400m annual pension contribution. It also believes that the risk to the company of the proposed Defined Benefit cash balance scheme would be “manageable” and “materially lower than under the current Plan”.
 
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