Pension Surplus

[norris9]

Pension Surplus.

In a recent CWU Live Dave Ward talked about a pension surplus, of which is worth a lot of money, in the billions I believe. I don't know how this all works, but he's trying to get the workers are share of that surplus or all of it...

Does anyone know if and when they decide to give it to workers whether it will only benefit current workers or everyone and anyone who has ever had a pension with Royal Mail? I'd assume it would be the latter.

[milly]

Pension Surplus.

In a recent CWU Live Dave Ward talked about a pension surplus, of which is worth a lot of money, in the billions I believe. I don't know how this all works, but he's trying to get the workers are share of that surplus or all of it...

Does anyone know if and when they decide to give it to workers whether it will only benefit current workers or everyone and anyone who has ever had a pension with Royal Mail? I'd assume it would be the latter.

It's always a good idea to have a surplus, just in case.
After the Union's recent track record, it's probably best to ignore their madcap ideas.

[RobertT]

Pension Surplus.

In a recent CWU Live Dave Ward talked about a pension surplus, of which is worth a lot of money, in the billions I believe. I don't know how this all works, but he's trying to get the workers are share of that surplus or all of it...

Does anyone know if and when they decide to give it to workers whether it will only benefit current workers or everyone and anyone who has ever had a pension with Royal Mail? I'd assume it would be the latter.

The surplus relates to the RMPP, so is connected to pension benefits built up by members of sections A, B & C between 2012 and 2018, plus the DBCBS between 2018 & 2024.
Although the DBCBS element is only a fairly small chunk of it.

There will also be some section F members(ex RMDCP) who paid into the DBCBS too.

The last I heard, the total surplus was in the region of £1.60 Billion and represented about 16% more in the pot that's needed to pay everyone's pension.

The CWU have previously announced their wish to use it to reduce the NRA of the new RMCPP from 67 down to 65. But I think that's a bit of wishful thinking on their part!
It's part of the RMPP, so if anyone is going to benefit from it, it should be the people whose contributions have helped to create it.

Some sort of surplus is always a good thing, so not all of it would be on the table if it was to be 'raided', and the decision as to whether any of it can be touched will fall on the RMPP trustees as it's their job to ensure the members interests are protected.

[Hyrrokkin]

Pension Surplus.

In a recent CWU Live Dave Ward talked about a pension surplus, of which is worth a lot of money, in the billions I believe. I don't know how this all works, but he's trying to get the workers are share of that surplus or all of it...

Does anyone know if and when they decide to give it to workers whether it will only benefit current workers or everyone and anyone who has ever had a pension with Royal Mail? I'd assume it would be the latter.

The surplus relates to the RMPP, so is connected to pension benefits built up by members of sections A, B & C between 2012 and 2018, plus the DBCBS between 2018 & 2024.
Although the DBCBS element is only a fairly small chunk of it.

There will also be some section F members(ex RMDCP) who paid into the DBCBS too.

The last I heard, the total surplus was in the region of £1.60 Billion and represented about 16% more in the pot that's needed to pay everyone's pension.

The CWU have previously announced their wish to use it to reduce the NRA of the new RMCPP from 67 down to 65. But I think that's a bit of wishful thinking on their part!
It's part of the RMPP, so if anyone is going to benefit from it, it should be the people whose contributions have helped to create it.

Some sort of surplus is always a good thing, so not all of it would be on the table if it was to be 'raided', and the decision as to whether any of it can be touched will fall on the RMPP trustees as it's their job to ensure the members interests are protected.

All of that surplus should/must be for the benefit of the workers who paid into it during those years - Sections A,B,C

[clashcityrocker]

Isn't it possible that at least some of that surplus is down to the investment choices of those managing the pension fund?
I doubt if we have just paid in an extra £1.5 billion.

[milly]

Pension Surplus.

In a recent CWU Live Dave Ward talked about a pension surplus, of which is worth a lot of money, in the billions I believe. I don't know how this all works, but he's trying to get the workers are share of that surplus or all of it...

Does anyone know if and when they decide to give it to workers whether it will only benefit current workers or everyone and anyone who has ever had a pension with Royal Mail? I'd assume it would be the latter.

The surplus relates to the RMPP, so is connected to pension benefits built up by members of sections A, B & C between 2012 and 2018, plus the DBCBS between 2018 & 2024.
Although the DBCBS element is only a fairly small chunk of it.

There will also be some section F members(ex RMDCP) who paid into the DBCBS too.

The last I heard, the total surplus was in the region of £1.60 Billion and represented about 16% more in the pot that's needed to pay everyone's pension.

The CWU have previously announced their wish to use it to reduce the NRA of the new RMCPP from 67 down to 65. But I think that's a bit of wishful thinking on their part!
It's part of the RMPP, so if anyone is going to benefit from it, it should be the people whose contributions have helped to create it.

Some sort of surplus is always a good thing, so not all of it would be on the table if it was to be 'raided', and the decision as to whether any of it can be touched will fall on the RMPP trustees as it's their job to ensure the members interests are protected.

All of that surplus should/must be for the benefit of the workers who paid into it during those years - Sections A,B,C

They're best just leaving that surplus alone, and take heed from the ubiquitous financial disclaimer.

Investment involves risk. The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested.

[RobertT]

Isn't it possible that at least some of that surplus is down to the investment choices of those managing the pension fund?
I doubt if we have just paid in an extra £1.5 billion.

It's not really down to the specific investment choices of the RMPP trustees, because most DB pensions invest heavily in the same thing – bonds/gilts.
It's the performance of those over the last 2-3 years that's improved the funding level of the vast majority of schemes.

It's left around 90% of schemes currently in surplus and has created a massive pot of money which government, unions and employers all want to get their hands on.
The danger being that taking money out when the times are good isn't necessarily a good move.

The point I'm making with regard to the RMPP, is however the surplus was formed it's part of the RMPP accounts and in my opinion should be kept within the scheme for the good of it's members.

[Hyrrokkin]

Isn't it possible that at least some of that surplus is down to the investment choices of those managing the pension fund?
I doubt if we have just paid in an extra £1.5 billion.

It's not really down to the specific investment choices of the RMPP trustees, because most DB pensions invest heavily in the same thing – bonds/gilts.
It's the performance of those over the last 2-3 years that's improved the funding level of the vast majority of schemes.

It's left around 90% of schemes currently in surplus and has created a massive pot of money which government, unions and employers all want to get their hands on.
The danger being that taking money out when the times are good isn't necessarily a good move.

The point I'm making with regard to the RMPP, is however the surplus was formed it's part of the RMPP accounts and in my opinion should be kept within the scheme for the good of it's members.

Exactly - it is OUR money for the purpose of OUR pension - so the Gov & RM and anybody else can get lost

[TopperGas]

Surprised DW is suggesting the money maybe used to invest in RM, surely it either stays in the pension fund or is paid out to it's members? If it is invested in RM it's basically being passed to DK as he will then no doubt benefit from the investment.

[RobertT]

There is currently debate about what should happen to pension surpluses, and the previous government ran a consultation as to what should happen to them. Options included sharing them between employers as well as members.
https://www.gov.uk/government/consultat ... it-schemes

It's not clear to me whether Labour will be following a similar route.

As the RM section of the RMPP is now a fully closed scheme with no more benefits being accrued, there may also be the possibility of a buy in or buy out at some point in the future, similar to what's already happened in the Post Office section.

A buy in is where a pension scheme uses a insurance policy to cover some liabilities, but still runs it themselves. Whereas with a buy out, all pension liabilities and admin are transferred over.

[mphill007]

Sounds like any RMPP pension surplus will be used to improve the business & for employees.No mention of improving the actual pensions of the members of the RMPP,where the surplus actually is,

[onearmedbandit]

Miners Pension Scheme has a surplus of £1.5 billion .
This is going to be used to give miners a bonus pension worth 32% of my guaranteed pension..
Royal Mail pensions should be using the pension surplus to improve our pensions

[TheTrolleyMan]

Or they could even pay out our pensions earlier. ie 63 yrs old

[mphill007]

Part of the surplus has come direct from RMPP members wages both still employed & retired.So part of it should be used to benefit the members who have paid this in through improved pension benefits.Lets hope the trustees see it this way and not the RM/CWU way!

[RobertT]

This is what the trustees say on the RMPP website

The Trustee of the Royal Mail Pension Plan (RMPP) acknowledges the Government’s legally binding agreement with EP Group regarding its takeover bid for IDS.

Our primary focus is the protection of RMPP’s 123,000 members and the Trustee is pleased that it has reached agreement with EP Group to preserve the current governance structure of the Plan for a period of five years, subject to remaining required approvals being completed.

This undertaking gives the Trustee and members confidence that the necessary expertise and independence will remain on the Trustee board. This in turn provides the necessary stability for the Trustee to continue to look after members’ interests going forward.

The Trustee looks forward to continuing to engage with IDS and EP Group, should the takeover complete, and working to maintain the current healthy funding position of the Plan and to safeguard its future stability.

Please be assured that there is no change to your benefits and there is no action that you need to take. 

https://www.royalmailpensionplan.co.uk/news/#post-4052