MRM.COM:Future of the RMPP:We recently sent a letter to all members of the pension plan

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You may have seen some coverage in the media recently about the future of the Royal Mail Pension Plan (‘the Plan’). We recently wrote to all members of the Plan to let you know that we have started talking to our unions, CWU and Unite/CMA, about the future of the Plan after March 2018. We know how much members value their pension benefits. We want to give you certainty about the future of your pension as soon as possible.

Home mailing

In the letter, we explained that we are confident that we can keep the Plan open until March 2018, following the Pension Reform introduced in 2014. However, the next three-yearly valuation of the Plan is currently underway and the indications are that the cost of keeping the Plan open after Mach 2018 would more than double – from £400 million a year to over £900 million a year. This is not sustainable.

We are working with our unions so that the situation is fully understood, and to agree a proposal about the pension benefits the Company can provide after March 2018.

Once the Company has a proposal, we will fully consult members about any proposed changes, as we did in 2013.

For more information, please see the letter we sent to Plan members’ homes.

If you are a member of the Royal Mail Defined Contribution Plan (RMDCP), you will have also received a letter recently about these discussions. As the RMDCP is a separate scheme, these discussions about the future of the Plan do not affect your pension benefits.