No: 976/11 - PENSIONS

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Letter to Branches




No: 976/11
Ref: 67000
Date: 18th November 2011


TO: ALL BRANCHES WITH POSTAL MEMBERS


Dear Colleague

PENSIONS

Following the success of our first ever decision-making Policy Forum, the Postal Executive this week agreed a number of immediate steps to take forward the agreed Pensions Policy, unanimously agreed by all Branches.

As a result, letters have been sent to Government and the Royal Mail Group, explaining the Union’s position in advance of the next Tri-partite Pensions meeting between the parties on Monday 21st November 2011.

The Postal Executive also recognises the need to communicate the agreed policy to CWU members. As part of this process we would like to emphasise the fact that Branches have a role in communicating Pensions Policy, initially to all Representatives and also through your own communications to members in the workplace.

We would ask Branches to particularly focus on explaining the changes being proposed under the Postal Services Act and the position adopted with regard to the public sector dispute. To assist Branches communicating an overview of the Postal Services Act changes, we have attached the relevant slides that were used in moving this section of the Report. We have also included a copy of agreed amendments to the Report. The overall CWU position on the public sector dispute, whilst debated at the Forum, is of course a matter for the NEC and we understand this will be communicated through the General Secretary.

We will be producing a Pensions Pamphlet that will be sent to all members’ home addresses. This will explain our position on all the issues covered in the Report and will again focus on the changes being proposed under the Postal Services Act. This communication will take a few weeks to prepare and the exact timing of it being posted to home addresses may also need to take account of the overall status of our discussions with Government and the Royal Mail Group.




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Finally, Branches wishing to make any comments on the structure of the Policy Forum, for future reference, should send these to the Postal Chair Jane Loftus (jloftus@cwu.org) by no later than Friday 2nd December.

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

Yours sincerely



Dave Ward
Deputy General Secretary (P)

POSTAL POLICY FORUM - NOVEMBER 2011
AMENDMENTS THAT WERE CARRIED


RECOMMENDATION 1:


COMP
2
Add at end:-

That this Policy Forum agrees that the PEC will call either an emergency policy forum or a policy session at Annual Conference 2012, whichever is more appropriate time wise, if the European Commission rejects the governments request for state and or grants rescue and which allows the company to be broken up or does not resolve the pension issues.

London Divisional Committee
South East London Postal and Counters
East London Postal Branch



RECOMMENDATION 2


COMP 3
Amend Recommendation 2 to read:

That the Policy Forum endorses Section 7, Paragraphs 1 to 5 as CWU Pensions Policy, with the following changes:

1. Paragraph 1.2: the eighth bullet point to read:

“A guarantee that going forward the RMPP will continue to operate as a defined benefits scheme under the CARE arrangements, and that the pension benefit entitlements will be at least as good as under the current RMPP. The Union should seek to secure such a guarantee by making this a contractual obligation with the employer.”

2. Paragraph 1.2: after the bullet points, add this sentence:

However, if the terms of the RMPP are changed in any way that worsens the pension benefit entitlements of members going forward, then the PEC is instructed to immediately launch a campaign for strike action, and to organise a ballot for strike action.
3. Paragraph 5: amend this to read:

“The CWU should actively engage in the broader TUC Campaign to improve pensions for all workers and offer solidarity to the public sector Unions in any way we can, whilst highlighting inadequacies of private sector schemes and opposing any moves to raise the retirement age



beyond 65. We should continue to review and monitor the public sector dispute in conjunction with our own discussions as developments take place. If the CWU becomes involved in any trade dispute over pensions, then the PEC is instructed to seek to coordinate any industrial action taken along with that being taken by the public sector Unions.”

Anglia Divisional Committee
Eastern No.4
Eastern No.5
Eastern No.6
South Central No.1
Cleveland Amal
Romford Amal


COMP 4
That the policy forum agrees that the CWU will oppose, by all means necessary, up to an including a national industrial action ballot, any further attempt by Royal Mail, any new prospective owner, strategic partner or government to increase our pension contributions, reduce benefits or worsen the current pension scheme in any way.

The policy will be given the widest possible circulation including direct communication to members home addresses.

London Parcels and Stations Amal
Mount Pleasant International
North/North West London



6
Add at end of Recommendation 2 :

Paragraph 1 re-word bullet point 3 as follows :

Confirmation (validated by independent pension experts and lawyers) that the split of assets will leave the RMPP fully funded and deficit free going forward with sufficient assets to fund future benefits and the ability of new entrants to join. This also needs to ensure that the split of assets setting up a POL section is fair and equitable.

Paragraph 2 re-word bullet point 2 as follows :

The reversal of CPI as the measure for up-rating of pensions and the reintroduction of RPI for the affected members, which should this not prove possible, a commitment will be sought from the Labour Party to ensure this matter is dealt with in their General Election manifesto.

Western Counties





COMP 7
Except that ; the CWU will pursue the policy of maximising elements of pay going forward to be fully reckonable for pensionable pay.

This includes any future lump sum payments, current pay supplements and any shift/skills payments that are currently either not reckonable for pensionable pay or only part reckonable for pensionable pay.

London North Western C&C
South East London Postal and Counters
East London Postal


8
That the Policy Forum endorses Section 7, Paragraphs 1 to 5 as CWU Pensions Policy, with the following changes:

1. Paragraph 1.2:

Written guarantees from both the Government and Royal Mail (as appropriate) that what is being proposed under the Postal Services Act will not disadvantage in any way all current benefits members are entitled to. To ensure this occurs, the Postal Executive will establish a Pensions working group (to be determined by the Postal Executive) who will develop and oversee the proposed, current and future benefits for scheme members
Conformation that in the event of a sale any new company will not be allowed a contributions holiday or to benefit from any windfall profits. In the event of the fund becoming surplus, the Postal Executive will undertake a consultation exercise (including further Policy Forums) of branches and members on how to re-distribute the surplus through additional and / or enhanced benefits to pension plan members.
A death in service payment which is at least equivalent to the current scheme i.e. a lump sum equal to four times pensionable salary.
Yearly pension illustrations to be sent to members home address
Option to exchange up to 25% of the total value of the plan to increase the higher tax free lump sum
Measures will be put in place to ensure adequate training is provided for reps to understand the basic elements of the new plan
Royal Mail Group to re-introduce the “retirement seminars” for employees reaching retirement age

This list is not exhaustive
Gloucestershire Amal






9
Add at end:

that what is being proposed under the Postal Services Act will not disadvantage in any way the benefits members are entitled to or that existing pensioners currently receive.

Greater Manchester Amal


COMP 10
Add at end:

Accept that this Policy Forum reaffirms the CWU’s policy of pursuing the removal/reduction of the “lower earnings limit” which applies to the members of the Section C of the pension scheme.
Harrow and District Amal

Accept that this Policy Forum reaffirms the CWU’s existing policy of pursuing the removal/reduction of the lower earnings limit which applies to the members of the Section C pension scheme. The postal executive is instructed accordingly.

Plymouth and East Cornwall Amal



11
At end of recommendation 2:

That before any changes take place that effect the contributions or benefits to the members of the pension schemes these will be placed before the membership for endorsement.
South East No.5


COMP
12
Add at end:

that the assets and financial arrangements for RMPP going forward will be sufficient to provide long term stability with strong employer covenant from the start
Newcastle Amal
York and District Amal














COMP 13
That this Policy Forum agrees that the policies outlined in the Pensions Section 7, Paragraph 1-5 and any other motions carried at the Pensions Policy Forum will be subject to regular communications updating the wider membership on the progress the union is having in regards to the unions agenda.

If the union does not achieve the policies outlined in points 1-5 in Para 7 and any other pension policies carried at the Pension Briefing, then the union will call a further policy forum or report to Annual Conference on the progress the CWU has made. The policy forum or a report to Annual Conference should allow the CWU at National, Divisional and Branch level the opportunity to make further policy on pensions going forward.

London Divisional Committee
London South West
West London Postal