DC Plan and DB Plan

[thelittlesthobo]

I began full-time in 2008, and Royal Mail management told me to join the DC Plan (the DB Plan was still open but they told me in no uncertain terms that I would be wasting my money paying into that as it was about to close). I'm performing exactly the same job as my colleagues who are paying into the DB Plan but will have a much lower pension income at retirement. Is part of the new pension proposals (by Royal Mail/the CWU) to put everyone into the same pension plan, or will there still be two 'classes' of Royal Mail employees in terms of pension?

[RobertT]

What you were told in 2008 was very bad advice and has cost you a lot of money!

Under RM’s proposals from 1st April 2018 there will still be a two tier workforce as far as pensions are concerned. With those in the current DB scheme having a choice of Cash Balance or a Defined Contribution scheme with employer contributions of 13.6%.
While current DC scheme members(RMDCP) will have a maximum of 10% contribution off RM.
Details here: https://www.myroyalmail.com/pensions/rm-pension-plan" onclick="window.open(this.href);return false;

The CWU want a united scheme for all. They’ve put forward a DB alternative which would be for everyone, but it was rejected by RM.

The two sides are still talking so it remains to be seen what will happen.

[BeamishStout]

........ or a Defined Contribution scheme with employer contributions of 13.6%.
While current DC scheme members(RMDCP) will have a maximum of 10% contribution off RM.

The CWU want a united scheme for all. They’ve put forward a DB alternative which would be for everyone, but it was rejected by RM.

The two sides are still talking so it remains to be seen what will happen.

Thanks for the info Robert as usual. Had not realised this disparity until now

Makes it quite clear why RM's 2-tier pension proposals are grossly unfair particularly for those that have been forced into RMDCP over the recent years.