Securing our future leaflet - pension examples

[stephen500]

I have just had the "secure our future" leaflet from RM through the door and it does not make for good reading.
On Pensions if we take their new Defined benefit scheme, it appears to be that it will be worth about a third of our current scheme.
At present using £25000 salary example, a section c member with 30 years service, aged 50 can expect £12,500 a year up to 2018 and £1900 for 15 years from 2018?
That appears to be, as I said worth about a third. £120 per year of service against £416. Although I don't know what the impact of the lump sum (£75000) is on these figures, ie how good it is compared to our current schemes.
That is my reading, do you think I am right?
Any thoughts on this?
See leaflet.

[daveyeff]

my thoughts are they are using the same propaganda shite as a brainwashing tool to convince the gullible not to take action. they are repeating themselves over and over. f**k them.

[fly-catchers]

Those examples look misleading as they have used the whole £25000 to calculate the existing benefits. But Section C members have the LED of £3328 taken off their wages to calculate their pensionable pay. In which case surely it would be nearer £361 a year and that still assumes that all the 30 years was Final Salary. But in that example it would be 20 years Final Salary and the rest CARE. Never trust RM with its figures!!

[stephen500]

Those examples look misleading as they have used the whole £25000 to calculate the existing benefits. But Section C members have the LED of £3328 taken off their wages to calculate their pensionable pay. In which case surely it would be nearer £361 a year and that still assumes that all the 30 years was Final Salary. But in that example it would be 20 years Final Salary and the rest CARE. Never trust RM with its figures!!

Plus mine is section B and Care

[jetblack]

The "New" DB (?) cash scheme they are proposing looks a lot to me liked a fixed term fixed rate bond. What is the guaranteed premium ? How is it decided ?

I can say this with some certainty - the rate of return gauranteed to provide the "defined" payout will, over time, be eroded - as will the level of RM's contribution. Meaning that in the medium term this proposed "DB" scheme will look a lot like a savings scheme. Yes, I know there will be tax advantages - but you get those to some extent with an ISA.

Its crap.

They had this waiting in the wings all along - this is meant to be the big compromise that will win us all over by showing how much they are prepared to move on the original proposal. In my view RM proposal number 1 was appalling - and proposal number 2 isn't much better.

Seems to me that the current DC plan members - who will continue to be in that scheme under RM's new proposal (?) - have a lot to gain from the introduction of the scheme proposed by the union.

They say that the unions proposal is too risky - on what basis and over what timeframe are we talking here ? I don't think it is too risky over the medium to long term.
And they say its un affordable - that is bullshit. Its not much more than they are currently paying in contributions and can be more than covered by profits. So on what basis is it unaffordable ?

[daveyeff]

you know what jet,,,,that is EXACTLY what I was thinking. they had this waiting in the wings all along, and its been made to look like a compromise. you are right... its crap. i'll say it again...f**k them.

[robsbelly]

Who the hell wants to work for royal mail till their 65 not bloody me. Why didn't they do the example to age 60 on 21 grand a year. It was to make it look good which it ain't.royal mail are trying to destroy our pension and will.lets stay strong together.

[BeamishStout]

On p8 it splits the table Original DC Proposal v New DB cash balance proposal

Now the question remains as to whether the figures for Original DC Proposal include the additional 1% in each tier outlined on page 7. I don't think it does. Also it does not make it clear what contribution rate is applied by the employee (but I am assuming it is 6%). In fact I'm not sure if I have seen what the % for an employee in this new DB cash balance proposal. I assume it is 6%?

[TheTrolleyMan]

RM had plan number 2 all ready to offer us weeks ago , I also see they re not telling us about Death in Service benefits

[daveyeff]

why do they NEVER mention the money they are raking in from D2D.

[gary1975]

am i right in thinking that they still want us on two separate pensions ? I hope that the union stands by the same pension for all. we should all be on the same pension whatever that turns out to be.