Taxpayer to be on the hook for 400 each - RM Pension

[TrueBlueTerrier]

Taxpayer to be on the hook for £400 each as Royal Mail pension deficit hits £10billion

http://www.telegraph.co.uk/news/uknews/ ... llion.html" onclick="window.open(this.href);return false;

The news means that every household in the country will be saddled with a £400 liability if the privatisation of the nation’s postal operator goes ahead.

Whitehall sources have said it is likely the pension deficit will be moved directly onto the Government’s books as part of any privatisation to make the company more attractive to bidders.

One source said: "This would only be done as part of a package, and if private investment was secured, as it would de-risk the taxpayer and prevent the Government from having to meet all of the company's investment needs."

Some 400,000 current and former postal workers will receive a letter from Royal Mail’s trustees this week spelling out the pension problems at the company.

Sky News reported today that the figure could be as high as £10.3billion, which - divided by the 26million households in the UK -works out at £400 each. The pension liability is thought to the biggest in British corporate history.

Ed Davey, the postal affairs minister, is preparing to unveil more details of the privatisation this Autumn, with legislation passed by June next year.

He is examining whether to sell a stake in Royal Mail, or float it on the London Stock Exchange, raising as much as £4billion, in the biggest privatisation for two decades.

Postmen will probably be offered a stake in the company through a John Lewis-style trust.

Last month he told The Daily Telegraph: "If we don’t transform Royal Mail, it will be dragged down by a lethal combination of falling mail volumes, low investment and potentially one of the worst pension crises for employees in UK history."
He added that if nothing was done "significantly the pensions of past employees, current employees and their families would be at risk".

Neither Royal Mail nor the Department for Business Innovation and Skills spokesman would comment. A spokesman for the trustees was not available for comment.

[Broxi51]

Taxpayer to be on the hook for £400 each as Royal Mail pension deficit hits £10billion

http://www.telegraph.co.uk/news/uknews/ ... llion.html" onclick="window.open(this.href);return false;

Ed Davey, the postal affairs minister, is preparing to unveil more details of the privatisation this Autumn, with legislation passed by June next year

Last month he told The Daily Telegraph: "If we don’t transform Royal Mail, it will be dragged down by a lethal combination of falling mail volumes, low investment and potentially one of the worst pension crises for employees in UK history."
He added that if nothing was done "significantly the pensions of past employees, current employees and their families would be at risk".

Not much of a salesman is he?

[dvbuk55]

Taxpayer to be on the hook for £400 each as Royal Mail pension deficit hits £10billion

http://www.telegraph.co.uk/news/uknews/ ... llion.html" onclick="window.open(this.href);return false;

Ed Davey, the postal affairs minister, is preparing to unveil more details of the privatisation this Autumn, with legislation passed by June next year

Last month he told The Daily Telegraph: "If we don’t transform Royal Mail, it will be dragged down by a lethal combination of falling mail volumes, low investment and potentially one of the worst pension crises for employees in UK history."
He added that if nothing was done "significantly the pensions of past employees, current employees and their families would be at risk".

Not much of a salesman is he?

Maybe he should have waited for the letter, it's only 8 and a bit Bn so we are in a much better financial position and it will only be £320 per household Is this the long awaited statement that dingo promised