LTB No. 696/11 - Pensions Update

[Geezer]

Letter to Branches




No. 696/11 Ref : 67000 Date: 8th August 2011



TO ALL BRANCHES WITH POSTAL MEMBERS




Dear Colleague

Pensions

The purpose of this LTB is to firstly update Postal Branches on the current position with regard to Pensions and secondly, confirm the approach that has recently been agreed by the Postal Executive to move forward the Union’s policy.

Following the Postal Service Bill becoming an act of Parliament, the Government has intensified its pension activities in order to conclude the necessary secondary legislation by the end of this year.

The Government has a team of experts that have identified seven work streams as part of the detailed process for taking over the historic pension’s deficit and creating a new public sector scheme alongside a separate and smaller Royal Mail Pension Plan going forward. Their work streams cover:

- Benefits of the schemes
- The methodology for dividing the assets
- Governance arrangements for the new public sector scheme
- The way both schemes will be administered
- The statutory instruments that will be drafted into secondary legislation by the end of the year
- The sectionalisation of Post Office Ltd within the remaining RMPP
- The way that the various changes will be communicated to scheme members

In line with their statutory duties the RMPP Trustee Board are involved in this process.

Whilst the Union has campaigned for the removal of the historic pension’s deficit, we have told the Government at a meeting last week that we will need to be convinced that the detailed arrangements for securing this are beneficial to CWU members both now and in the future. This is particularly relevant given the European state aid process, the possibility of a new owner and all the issues associated with the Governments wider pension policy.




For their part the Government has now committed to more regular pension meetings to address the concerns of CWU members and fully involve the Union in the detailed changes taking place.

To deal with these developments the Postal Executive has also put in place the following measures:

• We have engaged pension industry experts who will advise the Union and be directly involved in our ongoing discussions with Government.

• In conjunction with our advisors we have developed a comprehensive agenda for discussions with the Government and the company. The CWU’s key objective is to secure our members pension entitlements both now and in the future.

• In due course we will produce a major communication to all CWU members explaining all the issues associated with what is happening on pensions and the position the Union is taking.

• We have agreed to hold our first policy forum under the new format on the subject of pensions. This is provisionally being planned for the end of October 2011 and will be facilitated by a comprehensive pension’s policy document.

• As set out in the agreed Joint Statement the subject of pensions is a key part of ongoing National talks with the company.

It can be seen from the aforementioned that in the coming weeks and months the issue of pensions is firmly on the agenda and that the Union is focused on securing our members pension entitlements both now and in the future.

Any enquiries to this LTB should be directed to the DGS (P) Department.



Yours sincerely

Dave Ward
Deputy General Secretary (P)