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Pensions not protected

Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
2yearpostie
Posts: 1839
Joined: 03 Mar 2020, 15:36
Gender: Male

Pensions not protected

Post by 2yearpostie »

Just been on the fcsc website and it says if the company goes under the pensions arent protected.
RobertT
EX ROYAL MAIL
Posts: 6644
Joined: 09 Sep 2007, 14:26
Gender: Male

Re: Pensions not protected

Post by RobertT »

2yearpostie wrote:
21 Jul 2023, 09:49
Just been on the fcsc website and it says if the company goes under the pensions arent protected.
It depends which RM pension you're referring to!

The RMSPS is backed by the government and effectively paid for by UK tax payers. It makes up roughly 2% of the total public sector pension liability.

The RMPP is currently in surplus. But if there wasn't enough in the pot and RM were to go bust, the Pension Protection Fund would pay out. Although not necessarily on exactly the same terms.

The RMDCP is effectively the same as a personal pension(with employer contributions), the success of which depends on how your choice of investments perform. There's no come back if they tank and no liability on RM, other than to pay in their percentage.
Links to all RM pension related websites are here