Truly shocking and Royal Mail's sleight of hand

[stephen500]

I was looking today at Royal Mail's pension proposal. Naturally I started off looking at mine. No great surprise or great loss. Then I decided to have a look at pensions for those aged 30 and 40 with much less service and I was truly shocked. Below each proposal/illustration RM appear to use a sleight of hand. They suggest for example that a 30 year old with 10 years pensionable service who is paid £25,000 a year COULD see over a 20 year payment period (65 to 85) an increase in payments of £29,000 in total at an extra £1,100 per year and an increased lump sum. This 30 year old thinks he is now better off compared to Rm's original proposal. Well he is in for a shock. That 30 year old will lose compared to what he would have had in section "C" (his current pension) £7,600 per year off his current pension and £22,700 off his lump sum. Or over the same 20 year payment period they reference (65 to 85) £174,700 less in total benefits. Giving you back £29,900 is chicken feed. The 40 year old with 20 years service is not as bad off, but he still stands to lose a lot of money over the 20 year reference period (65 to 85). In pure cash terms, to save the same amount of money lost this 30 year old retiring at 65 would have to save £95 per week, just to have the same benefits he will lose once section "C" closes in 2018. Shocking.

[k979aaa]

Well it was inevitable as soon as they got away with the Great Pensions Robbery of 2008 they would hit us again just like any soft target a bank full of hard working postmens/womens cash and who is all this cash going to the pension funds of Thailand's public service workers as are shares were bought by them and others not forgetting Moya and her mates. But at the end of the day you need a business without conflict to have a good share price we are share holders too unless you cashed them in but a better solution this time should be written in stone and at a pace with all our interests at the forefront than royalmails pace of change attitude!

[FAB]

I was looking today at Royal Mail's pension proposal. Naturally I started off looking at mine. No great surprise or great loss. Then I decided to have a look at pensions for those aged 30 and 40 with much less service and I was truly shocked. Below each proposal/illustration RM appear to use a sleight of hand. They suggest for example that a 30 year old with 10 years pensionable service who is paid £25,000 a year COULD see over a 20 year payment period (65 to 85) an increase in payments of £29,000 in total at an extra £1,100 per year and an increased lump sum. This 30 year old thinks he is now better off compared to Rm's original proposal. Well he is in for a shock. That 30 year old will lose compared to what he would have had in section "C" (his current pension) £7,600 per year off his current pension and £22,700 off his lump sum. Or over the same 20 year payment period they reference (65 to 85) £174,700 less in total benefits. Giving you back £29,900 is chicken feed. The 40 year old with 20 years service is not as bad off, but he still stands to lose a lot of money over the 20 year reference period (65 to 85). In pure cash terms, to save the same amount of money lost this 30 year old retiring at 65 would have to save £95 per week, just to have the same benefits he will lose once section "C" closes in 2018. Shocking.

And on those section C examples they have not take off the lower earnings deduction either to give an even more inaccurate figure!