Pension Surplus

[Hyrrokkin]

Part of the surplus has come direct from RMPP members wages both still employed & retired.So part of it should be used to benefit the members who have paid this in through improved pension benefits.Lets hope the trustees see it this way and not the RM/CWU way!

The fact that the CWU seem to be on board with this is a disgrace as far as i am concerned.
It is OUR money for OUR pension

[mphill007]

Looks like CWU will be using it like the Escrow fund to use as a share out bung to smooth through pay deals!

[Wullie10]

My knowledge of these things is basic , but the Government insit that pension funds must purchase "" safe "" bonds ie Government debt. As the Government borrow more and more the interest on these bonds increases. Hence the pension funds have surplus money , which the Government would love to get their hands on ? Someone with better knowledge of these things tell me I'm wrong ? Seems like a giant ponzi scheme to me .

[milly]

My knowledge of these things is basic , but the Government insit that pension funds must purchase "" safe "" bonds ie Government debt. As the Government borrow more and more the interest on these bonds increases. Hence the pension funds have surplus money , which the Government would love to get their hands on ? Someone with better knowledge of these things tell me I'm wrong ? Seems like a giant ponzi scheme to me .

The Government do indeed operate a Ponzi scheme, hence the need for more and more immigrants to fund Pensions,
The Government are no different to the Mafia, they have a monopoly on violence, extort money and commit fraud.

[Kevin.r.smith]

Milly stop talking rubbish

[milly]

Milly stop talking rubbish

What parts were rubbish?
Perhaps, you could explain how the welfare system isn't a Ponzi scheme, if I'm talking rubbish.

[sweepster70]

I believe the government and Ep group have agreed that the surplus cannot be moved out of Royal Mail. So it can fund a lot of things, possibly even pay rises?
https://www.google.com/url?sa=t&source= ... mJnZVQPTpx
It's right at the bottom.

[heapsy]

I believe the government and Ep group have agreed that the surplus cannot be moved out of Royal Mail. So it can fund a lot of things, possibly even pay rises?
https://www.google.com/url?sa=t&source= ... mJnZVQPTpx
It's right at the bottom.

You cannot use pension funds, to increase pay.
Not sure, but don't think funds can be used to lower the NRA of the scheme either. The unions should never have agreed to an NRA of 67. Way too late for most delivery staff.

[RobertT]

A pension surplus could, and in my opinion should, be used to improve the benefits of it's members, which could mean higher pensions or potentially changes in NRA. Although both would clearly increase the scheme liabilities going forward.
The RMPP trustees do have some say on this and they should definitely be looking after their members interests, ahead of anything else.

The CWU's initial idea of using the RMPP surplus to lower the NRA of a completely different scheme(the RMCPP), was total pie in the sky in my view. And the fact it doesn't seem to form part of the recent announcements, is no great surprise.

If a company receives any pension surplus, I don't think there's anything stopping them from using it for whatever they choose, pending any agreements with unions. That could potentially include staff pay rises or lump sums, aswell as investing in the company.
But I doubt if staff benefits will be high on the list of priorities.
The recent blurb says the money will stay within RMG, but if it's owned by Kretinsky he's likely to be the one gaining the most from it.

[mphill007]

More than likely the CWU are hoping to use this surplus as a lump sum pay deal sweetener like the escrow fund.Benefiting CWU members over RMPP members which is an absolute disgrace and the trustees see through this.

[Wullie10]

The money could be used to improve the supplement paid before state pension age. Would give ageing postman a more realistic option of going before 67. So in a round about way would fulfil the unions idea of lowering the nra. And it wouldn't eat into the surplus all that much either.

[Hyrrokkin]

Why cannot the members who paid into this receive x amount but it can only go into a personal pension/SIPP/AVC etc

[TopperGas]

Why cannot the members who paid into this receive x amount but it can only go into a personal pension/SIPP/AVC etc

The CWU clearly want to please as many of their members as possible, not just those in the closed pension scheme.

[heapsy]

The money could be used to improve the supplement paid before state pension age. Would give ageing postman a more realistic option of going before 67. So in a round about way would fulfil the unions idea of lowering the nra. And it wouldn't eat into the surplus all that much either.

They couldn't improve the supplement without discriminating against other section members. Only section C members get it.

[Wullie10]

The money could be used to improve the supplement paid before state pension age. Would give ageing postman a more realistic option of going before 67. So in a round about way would fulfil the unions idea of lowering the nra. And it wouldn't eat into the surplus all that much either.

They couldn't improve the supplement without discriminating against other section members. Only section C members get it.

That's why I mentioned it wouldn't eat into the sum a huge amount ( not everyone wants to go before NRA ) . Obviously others would have to be compensated somehow. Either way it ought to go to members in some form of other but sadly That's very unlikely.