Royal Mail Pension Scheme Made Emergency Cash Call

[clashcityrocker]

Royal Mail rushed forward the monthly payment into its pension scheme to help prevent a cash crunch, The Telegraph can reveal, after the mini-Budget sent crucial money markets into a tailspin.

https://www.msn.com/en-gb/money/other/r ... 3388ef1224

The company responded to a request from the trustees of the Royal Mail Pension Plan to provide emergency liquidity, amid fears across the City that a run on pension funds driven by products known as Liability-Driven Investments (LDIs) would leave major funds insolvent. The Royal Mail scheme has 124,000 members and liabilities of £11bn.

[milly]

Royal Mail rushed forward the monthly payment into its pension scheme to help prevent a cash crunch, The Telegraph can reveal, after the mini-Budget sent crucial money markets into a tailspin.

https://www.msn.com/en-gb/money/other/r ... 3388ef1224

The company responded to a request from the trustees of the Royal Mail Pension Plan to provide emergency liquidity, amid fears across the City that a run on pension funds driven by products known as Liability-Driven Investments (LDIs) would leave major funds insolvent. The Royal Mail scheme has 124,000 members and liabilities of £11bn.

I did try to warn people that our Pension wasn't safe only to be ridiculed and called a doom- monger
Funnily enough I think you were one of them clashcityrocker. .

[hans solo]

Totally agree and when they split company guess where the pension assets go

[Jefferson Starfish]

Totally agree and when they split company guess where the pension assets go

Where?

[milly]

I would advise people to watch the Big Short, so they can see how the financial institutions stiff the little guy.
No doubt our Pension is choc full of Government debt that is managed using the latest whizz-bang financial instruments to increase our Pension fund performance, all of which works extremely well until it doesn't.

[aiden01]

Totally agree and when they split company guess where the pension assets go

Come on tell us where it goes.

[hans solo]

Whoever gets complete control of the company
Will inherit all the pension assets as well as liabilities
I would imagine they would then force liabilities back onto uk gvmt ie us taxpayer
And cream off assets

[hans solo]

And I see bank had to step on again today with millions to support uk pension funds again
Going to get messy

[RobertT]

Whoever gets complete control of the company
Will inherit all the pension assets as well as liabilities
I would imagine they would then force liabilities back onto uk gvmt ie us taxpayer
And cream off assets

The pension assets of the RMPP are held in trust. The RMPP is a separate legal entity from RMG.
https://www.royalmailpensionplan.co.uk/about-the-rmpp/

And I see bank had to step on again today with millions to support uk pension funds again
Going to get messy

I appreciate the market turmoil isn't great, but up to 10th October the Bank of England had only actually bought a total of £5 billion worth of government bonds, over the 8 days up to that point.

They originally pledged to buy up to £5 Billion per day over 13 days, making a total of £65 Billion.

I don't know off hand how much is invested in the UK pension funds in total, but what the BofE has spent is a drop in the ocean.

[milly]

Whoever gets complete control of the company
Will inherit all the pension assets as well as liabilities
I would imagine they would then force liabilities back onto uk gvmt ie us taxpayer
And cream off assets

The pension assets of the RMPP are held in trust. The RMPP is a separate legal entity from RMG.
https://www.royalmailpensionplan.co.uk/about-the-rmpp/

And I see bank had to step on again today with millions to support uk pension funds again
Going to get messy

I appreciate the market turmoil isn't great, but up to 10th October the Bank of England had only actually bought a total of £5 billion worth of government bonds, over the 8 days up to that point.

They originally pledged to buy up to £5 Billion per day over 13 days, making a total of £65 Billion.

I don't know off hand how much is invested in the UK pension funds in total, but what the BofE has spent is a drop in the ocean.

"How did you go bankrupt?" "Two ways, gradually then suddenly".

[clashcityrocker]

https://www.msn.com/en-gb/money/other/t ... ceed11a4e1

Royal Mail said its pension plan uses LDI funds but that it was 'not affected as other UK schemes were'. It added: 'The Royal Mail Pension Plan regularly buys and sells assets. It is not a forced seller of any assets. Collateral needs were met.'

[milly]

https://www.msn.com/en-gb/money/other/t ... ceed11a4e1

Royal Mail said its pension plan uses LDI funds but that it was 'not affected as other UK schemes were'. It added: 'The Royal Mail Pension Plan regularly buys and sells assets. It is not a forced seller of any assets. Collateral needs were met.'

A rather vague statement!
How much collateral did we pay?
What does "not affected as other UK schemes were" mean?
Not a forced seller of assets so I assume assets were sold and if so how many?
When you first read the statement it looks reassuring but there are no actual details within that statement.