Union calls Post Office's plans to close DB a 'scandalous attack'

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The Communication Workers Union (CWU) has attacked plans from the Post Office to close its defined benefit (DB) scheme to future accrual on 31 August.
The plan, which involves launching a defined contribution (DC) scheme to where members will be transferred on 1 September, was revealed to employees on 2 February.

Around half (3,200) of all employees are active DB members according to the Post Office which will consult on the changes from 5 February for the legal requirement of 60 days.

CWU deputy general secretary Terry Pullinger said: "This is another scandalous attack on hard-working Post Office employees and their future pensions."
In a letter to branches, CWU assistant secretary Andy Furey explained the Post Office was rushing through a consultation.

He said: "The Post Office has rushed into this 60-day process without any meaningful dialogue with the CWU and without allowing any opportunity for alternatives to be explored."

The union argued scheme members would "suffer twice" under the changes proposed. "Members will lose future accrual and they lose the difference between the retail price index (RPI) and the consumer price index (CPI) revaluation on the benefits they have built up. And on top of all this, the scheme is in surplus - not in deficit. So not only is this all extremely unfair - there is no financial case for the changes either," Furey added.

Letters of protest have already been sent to Post Office minister Baroness Neville-Rolfe and Royal Mail Pension trustee Chris Hogg, requesting urgent meetings to formally set out the union's objections.

Home mailing has also been sent to all affected and potentially affected members with full details of CWU's position and further information.

In response a Post Office spokesman said: "No final decision has been made. We will shortly be starting a period of formal consultation with any employees that are affected by the proposed change.

"We have already started to discuss the changes with union representatives at the CWU and Unite and intend to continue these discussions throughout the consultation period.

"As a business we take our stewardship responsibilities for members' benefits very seriously, so doing nothing would not be a responsible thing to do. By doing nothing, we could reach a position where we could not afford the pension costs in the long term, which would not only put the benefits members have built up since 1 April 2012 at risk, but could also impact adversely the long term financial health of our business."