Letter to Peter Mandelson from the RM pension fund chairman

[POSTMAN]

Full text: Letter to Peter Mandelson from the Royal Mail pension fund trustees' chairman

http://www.guardian.co.uk/uk/2009/feb/2 ... ion-letter" onclick="window.open(this.href);return false;


Postal Services Review

Further to our meeting of 13 February, perhaps I could confirm the trustees' views in respect of the Hooper report, in so far as it affects the Royal Mail pension plan.

Let me reiterate the trustee's position. The trustee has a fiduciary duty to protect the benefits of the 450,000 members of the Royal Mail pension plan. The trustee's prime concerns, therefore, are the security of members' benefits and the strength of the covenant of the plan sponsor.

As you know, Royal Mail's position is weak in respect of its covenant and there is a significant pension fund deficit, which is a long-term drain on the company's cash. Royal Mail is already balance-sheet insolvent.

If the recommendations of the Hooper report were not implemented, the consequences could be very severe indeed for the Royal Mail pension plan and for Royal Mail itself.

In particular, in light of the weakness of Royal Mail, the trustee would consider it necessary to seek to significantly strengthen the funding basis for the 2009 actuarial valuation.

On a self-sufficient basis, this would value the liabilities far higher, resulting in a deficit that would be significantly larger than the £5.9bn quoted in the Hooper review, which is on the existing ongoing basis.

The law gives the trustee and Royal Mail until 30 June 2010 to agree this valuation.

Whatever its precise amount, the deficit resulting from a strengthened funding basis for the 2009 valuation is highly unlikely to be affordable by Royal Mail, with potentially devastating consequences.

If this were the case, the plan's financial resources would not be sufficient to provide the full value of benefits, which would need to be very significantly reduced. At present, in a winding-up, the plan would not even be able to provide as much as 50% of members' benefits.

In theory, the pension protection fund would act as a safety net for members, but I would not like to speculate on its ability in practice to absorb the plan without putting an intolerable levy strain on remaining UK pension schemes.

Consequently, the trustee of the Royal Mail pension plan, subject to obtaining satisfactory guarantees from government, is in favour of the Hooper report's recommendations.

We very much look forward to these being implemented, as soon as possible, for the benefit of all concerned.

Jane Newell

[BELIAL]

http://money.aol.co.uk/workers-protest- ... 5105206154

Well spotted, pension trustee moonlighting as a spin doctor surely a conflict of interests and abuse of position

[oypostie]

Off with her head

[TrueBlueTerrier]

Full Name Jane Newell OBE
Position Chairman, Royal Mail Pensions Trustees Limited

jane newell.jpg

Biography

Jane Newell is the independent Chair of the Royal Mail Pension Plan (DB, £21 billion, 450,000 members) and Chairman of the DSG international pension scheme (DB/DC £600 million, 16,000 members). From 1998-2005 she was Chairman of the United Utilities Pension Scheme and Chairman of the UU Group of the Electricity Supply Pension Scheme, and from 1994-2004 was a Trustee of the GlaxoSmithKline Pension Plan.
Her involvement with pensions arose from her appointment in 1992 as a founder Trustee, and subsequently Chairman, of the Maxwell Pensioners Trust for which she was awarded the OBE in the 1997 Birthday Honours list. She is also Pro-Chancellor and Chair of the Board of Governors of London South Bank University, a Justice of the Peace, and a Vice-President of the Liverpool School of Tropical Medicine. From 1996 – 2006 she was a non-executive Director of United Utilities plc and an external Assessor for the Assessment and Consultancy Unit of the Home Office (concerned with senior appointments in the Police, Prison and Fire Services).

In a previous life she has been an international civil servant, a university linguistics tutor and a health and university administrator.

[BELIAL]

Maybe someone forgot to tell her about the "independent" bit

[terrace]

According to The Times Jane Newell sent the letter without any consultation from her fellow trustees.The fellow trustees aren't happy .Here's the link
http://www.timesonline.co.uk/tol/news/p ... 796893.ece" onclick="window.open(this.href);return false;

[BELIAL]

Fairly obvious that Mandy has upped the ante by saying if you do not comply with my wishes, your pension is at risk. Some might view this as blackmail. Even if a suggestion of this is believed we must question if the present pension arrangements are legal/acceptable.
Fact is these are contracted payments that are deferred ,held back ,your wages stopped until you retire. It was promised to you, you earned it, but unless you do what Mandy says you can't have it
Since the trustees of the present scheme are a bit slow and can only spot a problem when it grows to £4 billion maybe we need to rethink pension arrangements?

[taxi4leighton]

well said. the post office got a 15 year holiday from paying into the pension pot, because the fund was awash with money. well someone took their eye of the ball did they. a pension fund which was billions in the black doesnt change to ones which are nearly bankrupt, doesnt happen overnight. so someone must take the blame for this. as for mandelson ,well i wish we had the same conditions that m.p.s have

[pocky20]

well said .am with you on that one he could be a gangster as i have said on other posts and got told of for it. now he is at the old blackmail game wake up people.i would not ming loseing the lot so he cant make a dime for this sell of this goverment needs takein down a peg or two and mandy needs to go .he is a del boy.out to make a quick buck and is pulling out all the stops so he can do this.ie blackmail :mfo :cfo :lfo

[belle smith]

minutes of meeting, redacted unfortunetly.

img027.jpg

[norbert]

http://money.aol.co.uk/workers-protest- ... 5105206154

Well spotted, pension trustee moonlighting as a spin doctor surely a conflict of interests and abuse of position

they are both as bad as each other - I agree with some that this stinks of Mandy , a nasty piece of work .