RM doubles pension cash for fat cat boss Adam Crozier

[TrueBlueTerrier]

Royal Mail doubles pension cash for fat cat boss Adam Crozier while posties retirement benefits face collapse - Exclusive

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By Stephen Martin 28/02/2009

While hardworking Posties pensions face collapse over £9billion black hole.

Fat cat Royal Mail boss Adam Crozier has had his gold-plated pension DOUBLED while posties retirement benefits are in meltdown.

Royal Mail paid s6million last year into a pension scheme open only to chief executive Mr Crozier and a handful of senior managers.

But while that was a 100 per cent increase in contributions, there was only a one per cent increase for the rank-and-file pension scheme which faces a s9billion black hole.

Ministers blame Mr Crozier, who gets s3million a year in salary and bonuses, for the cash crisis at Royal Mail and want outside managers brought in to run it better.

Last night Kevin Slocombe, of posties union the CWU, said: Its one rule for the bosses and another for our members.

The deficit in the main Royal Mail pension scheme was caused largely by bosses not paying any money into it for 13 years as the stock market boomed from 1990 to 2003. Now ministers accept that taxpayers will have to take on the burden of the debt as part of Royal Mails controversial part-privatisation.

The black hole is so big that it would bankrupt Royal Mail if it had to make up the massive shortfall.

But there are no government plans to bail out the executive scheme, which has a s43million deficit.

Millions are being injected into their scheme to ensure its safe for the future while washing their hands of the main scheme and waiting for the taxpayer to sort out the mess, said Mr Slocombe.

Whats happening is shocking and totally outrageous. Their priority seems to be protecting their own gold-plated six-figure pensions.

Mr Crozier has built up a Royal Mail pension pot of s1.1million. Royal Mail also paid at least s1million in to a private pension scheme for him since he joined in 2003. And it has made payments to him of at least s348,000 in lieu of other pension contributions.

Mr Crozier, 45, is one of only 150 Royal Mail managers granted entry to the executive pension. The rest of the 180,000 staff must make do with the general scheme, which offers fewer benefits.

Jane Newell, head of the main funds trustees, warned in a leaked letter last week that staff face having their pensions halved if the controversial part-privatisation of Royal Mail doesnt go ahead.

But her warnings dont apply to the executive fund, which is totally separate and has different trustees. Labour MP Jon Cruddas said of the executive scheme payments: This really does take the biscuit. This reeks of double standards by the management.

They have hoovered up public cash into their own scheme while skimping when it comes to the posties scheme. Many Labour MPs are worried the sell-off of part of Royal Mail will mean we nationalise the pension risk partly caused by the 13-year pension holiday and privatise the profitable parts. It isnt right.

Last night Royal Mail refused to say if money was paid in to the executive scheme between 1990 and 2003 when no cash was paid into the main scheme.

They refused to explain why payments into the executive scheme had been doubled to 48 per cent of salary, when payments into the main scheme were pegged at 20 per cent.

A spokesman said: These decisions are taken by the trustees of the scheme on independent actuarial advice. He claimed the executive scheme has a much higher deficit proportionally than the main plan.

s.martin@sundaymirror.co.uk

[Big Daz]

Good find TBT

Nice to see Senior mangers pension is being highlighted, but why are CWU not banging on about it?

Thats going round the houses (email list of political contacts) ASAP

[k979aaa]

I am dammed if i am going too pay for his pension increase by working for five extra years and still not get a final salary pension at the end of it!. GREEDY BAST*RD :cfo :cfo :cfo :cfo :cfo :cfo :cfo

[axeman]

iv'e heard on the grape vine that freddy the shreder has been caled in .............any truth in that ?

[k979aaa]

iv'e heard on the grape vine that freddy the shreder has been caled in .............any truth in that ?

Why is his pension not as big as :cfo

[axeman]

No simply to remove any evidence

[k979aaa]

No simply to remove any evidence

I we will keep an eye on him thanks axeman.