Royal Mail puts forward cash balance scheme

[TrueBlueTerrier]

http://www.professionalpensions.com/pro ... nce-scheme" onclick="window.open(this.href);return false;

Royal Mail has offered its employees a cash balance defined benefit (DB) scheme as a compromise for closing its current career average DB scheme to accrual.
The scheme, which could launch April 2018, would see members guaranteed a lump sum payment of the total value of contributions at retirement, which could be uplifted on a discretionary basis depending on investment performance, but would have no inflation protection.

The proposal comes after the company last month confirmed its scheme would close to future accrual from the end of March 2018, with members transferred into a defined contribution (DC) scheme.

It is an alternative to a Communication Workers Union (CWU) option of a "compromise" risk-sharing scheme, put forward in March, which would see DB and DC members merged into a single pension scheme. This scheme would guarantee a minimum wage in retirement with inflation-linked increases dependent on investment performance.

However, Royal Mail rejected this idea, arguing it would be too risky.

"We very much appreciate the care that the CWU applied to its proposal and we have agreed to meet them to discuss it further," it said in a statement. "However, at the moment, we do not believe the CWU proposal in its current form meets the fundamental principles underpinning our 2018 Pension Review. These are: sustainability, affordability and security."

The company said its cash balance scheme includes "elements of the CWU proposal, without some of the inherent risks", making it a "fair proposal that compares favourably" with other schemes in the industry.

A spokesperson for the CWU referred to a motion passed at its conference this week, which condemned the company's response and rejected its proposal.

The motion read: "Should Royal Mail attempt to introduce any of their policies which they have proposed within the negotiations by executive action, the CWU executive is instructed to active an immediate ballot of CWU members for strike action."

The spokesperson said the CWU's view had not been changed by Royal Mail's most recent proposal.

Speaking to the conference, CWU deputy general secretary for postal Terry Pullinger added: "We will seek every possible angle to reach agreement with Royal Mail, but if they bring it on, we've got to have it."

Royal Mail said it was continuing discussions with the CWU on both proposals.

[Rommagic]

Has the Cwu rejected this?.

[TrueBlueTerrier]

Has the Cwu rejected this?.

Quite emphatically http://www.royalmailchat.co.uk/communit ... 27&t=79614" onclick="window.open(this.href);return false;

ROYAL MAIL’S APPROACH TO PENSIONS IS INTELLECTUALLY BORING, MORALLY SICKENING AND AN INSULT TO ITS EMPLOYEES SAYS CWU