LTB 127/18 - Royal Mail Pensions

Post by **TrueBlueTerrier** » 02 Mar 2018, 10:03

LTB 127/18 - Royal Mail Pensions

No. 127/18

1st March 2018

Dear Colleague,

Royal Mail Pensions

This week members will have received a Pension Booklet from the business explaining the changes to Royal Mail pensions following the Agreement reached with the CWU.

The Booklet provides some detailed illustrations and typical examples for current members of the Royal Mail Pension Plan (RMPP) and the Royal Mail Defined Contribution Plan (RMDCP). To provide clarification following enquiries from members, we set out the options below:

• All current members of the RMPP will start building up benefits in the transitional Defined Benefit Cash Balance Scheme (DBCBS) from 1st April 2018. This will happen automatically from this date. No action is required by RMPP members.

• All current members of the RMDCP with at least 5 years’ service in the scheme have the option of a) joining the DBCBS Scheme from 1st April 2018 or b) going to the improved top tier of the RMDCP Scheme. If you wish to exercise these options you need to compete and return the appropriate form to Royal Mail.

• All RMDCP members with less than 5 years’ service will automatically be moved to the improved top tier of the DC Scheme on the 1st April 2018. (where employees will pay 6% contribution and the company 10%). Members can choose to contribute less if they wish to.

Any enquiries in relation to this LTB should be addressed to the DGS(P) Department quoting reference 24111a.

Yours sincerely,

Terry Pullinger
Deputy General Secretary (Postal)

18LTB127-Royal Mail Pensions http://emails.cwu.org/t/d-l-otijhc-ztkjiuyil-i/" onclick="window.open(this.href);return false;

View Online http://emails.cwu.org/t/d-l-otijhc-ztkjiuyil-d/" onclick="window.open(this.href);return false;

fishtank · Post by **fishtank** » 02 Mar 2018, 11:02

All current members of the RMPP will start building up benefits in the transitional Defined Benefit Cash Balance Scheme (DBCBS) from 1st April 2018. This will happen automatically from this date. No action is required by RMPP members.

This is false and misleading.
Current RMPP members have the option of choosing between the DBCBS scheme and the Royal Mail Defined Contribution scheme.

There is even a form allowing you to do so contained in the pack. Only IF members choose to do nothing will they automatically end up in the DBCBS scheme.

This omission is utterr incompetence in an ltb that pronounces itself as "clarification".

Glenno · Post by **Glenno** » 02 Mar 2018, 11:06

fishtank wrote:
All current members of the RMPP will start building up benefits in the transitional Defined Benefit Cash Balance Scheme (DBCBS) from 1st April 2018. This will happen automatically from this date. No action is required by RMPP members.
This is false and misleading.
Current RMPP members have the option of choosing between the DBCBS scheme and the Royal Mail Defined Contribution scheme.

There is even a form allowing you to do so contained in the pack. Only IF members choose to do nothing will they automatically end up in the DBCBS scheme.

This omission is utterr incompetence in an ltb that pronounces itself as "clarification".

Well spotted Fish, I think that this requires attention from HQ, keep the spotlight on all info received

fishtank · Post by **fishtank** » 02 Mar 2018, 11:24

Glenno mate.I don't think HQ fully understands how important it is when giving out any information, advice or direction on pensions in any official capacity that you get it 100% factually correct and keep agenda and opinion to yourself. You can't "spin" pension information. it could land you in court.

It's a legal minefield...inside another legal minefield..surrounded by legal minefields.

jab0510 · Post by **jab0510** » 02 Mar 2018, 16:24

Is there an online copy of this booklet? As ive had no mail for 3 days because of a bit of snow?

Post by **RobertT** » 02 Mar 2018, 16:34

jab0510 wrote:Is there an online copy of this booklet? As ive had no mail for 3 days because of a bit of snow?

RMPP members see here.
RMDCP members see here.

Post by **rogersh** » 02 Mar 2018, 16:43

fishtank wrote:
All current members of the RMPP will start building up benefits in the transitional Defined Benefit Cash Balance Scheme (DBCBS) from 1st April 2018. This will happen automatically from this date. No action is required by RMPP members.
This is false and misleading.
Current RMPP members have the option of choosing between the DBCBS scheme and the Royal Mail Defined Contribution scheme.

There is even a form allowing you to do so contained in the pack. Only IF members choose to do nothing will they automatically end up in the DBCBS scheme.

This omission is utterr incompetence in an ltb that pronounces itself as "clarification".

Talking of clarification, PSE is included in details of the RMDCP as a benefit (saving tax & NI of £9 p/w earning £25.000 p.a.)

But it is unclear if PSE benefit is included for those who join the DBCBS.
This topic has been raised in another thread.

jab0510 · Post by **jab0510** » 02 Mar 2018, 17:27

Thank you Robert, i shall read and study it later to see if i change my gut feeling, which at this moment in time is to go DC this new cdc seems to much of a risk for me personally, i Preferred RM last pension offer tbh.
I take it the section C benefit will be left alone till i retire and not absorbed into this new scheme? Ie a wage in retirement linked to inflation cheers.

Post by **GoingPostal86** » 02 Mar 2018, 20:17

Just reading atm.. I'm in the RMDCP but can join RMPP due to 5 years service blah blah

Excuse me if I'm being dense but does this mean there would be two reductions in my wage each week?

One for the RMPP at 6% and one at 6% for DBCBS?

Effectively 12% of my wage each week?

I've probably read this wrong lol #absolutebrainfart

Is the RMPP then transfered to the new pension scheme when that is all finalised in the future by the government?

What of the RMDCP contributions I have build up from the start? Where do they go?

heapsy · Post by **heapsy** » 05 Mar 2018, 22:39

fishtank wrote:
All current members of the RMPP will start building up benefits in the transitional Defined Benefit Cash Balance Scheme (DBCBS) from 1st April 2018. This will happen automatically from this date. No action is required by RMPP members.
This is false and misleading.
Current RMPP members have the option of choosing between the DBCBS scheme and the Royal Mail Defined Contribution scheme.

There is even a form allowing you to do so contained in the pack. Only IF members choose to do nothing will they automatically end up in the DBCBS scheme.

This omission is utterr incompetence in an ltb that pronounces itself as "clarification".

Are you sure it is incompetence, and not just an attempt by CWU to bow to Rms wishes? What happened to a wage in retirement? Come to think of it, what happened to a single pension for all? Just why are two different pensions on offer, one of which has an NRA of, wait for it...... 67?