Could someone please explain the difference between what Royal Mail originally offered and what is on offer now. If we believe that this transition period is going to last longer than people think. I can see that the NRA has now increased to 67. ( 2 more years before payment). Many of us won't see 67 so how is this a good deal.
Forget pay and sww. The main dispute was pensions wasn't it.
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Transition period
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RobertT
- EX ROYAL MAIL
- Posts: 6645
- Joined: 09 Sep 2007, 14:26
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Transition period
RM originally offered a DC scheme with a max employer contribution of 10%, that was then changed to a Cash Balance with a 15.6% rate.
The transitional CB scheme is essentially the same as above, but the intention is that it will only last for a short time maybe for 1-3 years, and will provide a NRA65 lump sum to sit alongside your existing NRA65 benefits. Although it'll also be possible to take it at 60 along with your NRA60.
When or if legislation is passed, the proposed CDC scheme would then be introduced. It is the CDC scheme that will have an NRA of 67, your existing benefits won’t be changed.
CDC should provide a ‘wage in retirement’ for life followed by a spouses pension too, whereas both the DC and the CB schemes only provide a pot of money.
The transitional CB scheme is essentially the same as above, but the intention is that it will only last for a short time maybe for 1-3 years, and will provide a NRA65 lump sum to sit alongside your existing NRA65 benefits. Although it'll also be possible to take it at 60 along with your NRA60.
When or if legislation is passed, the proposed CDC scheme would then be introduced. It is the CDC scheme that will have an NRA of 67, your existing benefits won’t be changed.
CDC should provide a ‘wage in retirement’ for life followed by a spouses pension too, whereas both the DC and the CB schemes only provide a pot of money.
Links to all RM pension related websites are here