Credit Crunch and RM pension Fund

[Wild Cat]

In light of the recent volatility on the world stock markets the question arises as to what effect this will have on RM's pension fund,as there is already a large deficit.

The problems have arisen from the US so called sub prime mortgage market,basically dodgy mortgages were packaged up and sold on to pension funds among other things around the world.

It would come as no great shock to find out a few months down the line that the pension fund has an even bigger hole,and as a result will mean later retirement, increased contributions and fewer benefits:ie the final salary scheme being withdrawn.

As usual the ordinary working man and woman will have to pay through the nose for the rampant greed,speculation and incompetence of people like :cfo :lfo and friends.

It makes you angry to think we are paying into this scheme not knowing who or what is controlling our money.

[baldrick]

Totally agree with you. I have paid into the pension fund for 27 years. I paid into AVC's for 10 years,
until the collapse of Equitable Life, when my fund was devalued by 20%. I then transferred what
was left into the Post Office Superannuation Scheme, buying extra years, while RM took a pensions
'holiday'.I have been paying an additional £30 pw for the last 7 years to buy additional years so that I
would have the 40 years for a full pension.
I was expecting to be able to retire at 60 as I was promised when I joined the PO. Now it seems
I might have to work to 65 to get a full pension. But what's the betting that when I get to 65 I will be
told that there is not enough funds, and that I will have to work even longer, or take a smaller pension.
It's one big con.

[DGP1]

Stock market is back up again, we shouldn't worry unless we're due to retire soon. After all most of the major pensions were in surplus a few months ago.

[Crackerjackpencil]

Funny isn't it, the natioanl treasuries of the US, UK and other countries are now propping up the privately owned banks that caused this bloody mess with their greed glands in overdrive....Once again the normal guy gets screwed over while the fattest cats get a boost and a life line.

The US economy seems to be teetering on the brink of a resession, and if the US economy catches cold the world sneezes

[BELIAL]

Hey thats capitalism.

If you dont like it you can.... sorry ,my mistake you cant leave.

i

[Wild Cat]

Stock market is back up again, we shouldn't worry unless we're due to retire soon. After all most of the major pensions were in surplus a few months ago.

The stock market may appear to be recovering but it has gone nowhere for seven years now and the bad debts are still there.

If you take a look at what seniorman said it shows that people paying into the pension funds are getting shafted left right and centre whilst the brokers,dealers etc just can't seem to lose.

The bottom line is when the economy goes into recession they will use it as another excuse to attack our pay and conditions and we cannot be complacent about this at any stage.

We must make everyone aware that we will not allow them to make us suffer as a result of the incompetence of those at the top.

[baldrick]

Pension are deferred pay. Some of you younger people might think your retirement
is a long way off, and there are more immediate financial problems - raising a family,
mortgages etc. But we all get to retirement eventually (and it comes more quickly than
you think when you are young). The Government keeps telling us we have to make
adequate provision for our old age ourselves, but when we try to we just get shafted as
Wild Cat said.

[baldrick]

Stock market is back up again, we shouldn't worry unless we're due to retire soon. After all most of the major pensions were in surplus a few months ago.

Don't count on that my friend.
The stock market is nosediving again.
We shouldn't have to rely on the Big Business roulette wheel that they call
the Stock Market for our old age anyway. After a lifetime's work we should be
entitled to a reasonable standard of living when we retire.
I'd bet Leighton and Crozier aren't worried about their pensions.

[F0zziebear]

Economies go in cycles, so it's no surprise that a recession of some form is not far away. However, if your investments are in for the medium to long term then it should grow consistently. There are plenty of FTSE100 growth charts out there over several years.

The recent volatility has been caused by people lending ever riskier amounts of money to people. When people have confidence they are more willing to lend money to people with bad debt history. They charge them more interest and they make better profits. As soon as that confidence goes, or when people get greedy and lend too much risky money the boom cycle begins to collapse. This is what we are seeing at the moment.

At the end of the day something has to give. We are beginning to see the Labour approach falling down. Labour has invested huge amounts of money into creating public sector jobs. It should be pointed out that the government sector is one of the largest postal growth areas and is helping to bail out a reduction in post revenue from other sectors (have a little look at what mail is coming through!). Anyway, the government are now saying that they cannot afford inflation or above wage increases. This means people's spending power goes down in real terms, and start to feel a pinch on what they can afford. So these people start to spend less, are less confident and we begin a spiral down into recession. The problem on top of this is that it is much harder to get rid of public sector jobs than compared to the private sector. We are seeing this now with unions beginning to strike over pay. This situation then compounds the problem as the government can't afford these jobs.

I don't believe captialism or communism or whatever ism is necessarily evil (as some commentators say), but it is our overriding greed in good times that contributes to our downfall. We are all participants in this. Above people talk about there pension, where is that money being invested is my question. Other companies? Private sector? No-one has so far told me where this money goes, but for people on here claiming constant battering down by the rich 'classes' etc... are seeing life through rose-tinted glasses.

p.s. I don't bat for any side in the postal industry before people start having a rant.
p.p.s I'm sure Leighton will be fine as he can afford clever accountants to manage his wealth. C'est la vie
p.p.s As an economy we now have to pay for the 1960s child boomers who are all retiring at the same time, so more people chasing after less money in the retirement pot!!!

[johno47]

Fozzie weve had this argument before, a large proportion of our pension is invested in buildings now some of it is going to be invested in other companies, some good some bad, we are just ordinary working people who have paid into our pension fund in good faith on really poor wages in the hopes that maybe we can have a bit of security when we retire, but for goodness sake dont try and make us responsible for which companies the pension executives invest our money in, you talk like we are all going to get fantastic bonuses and pensions, no sorry thats bosses, we cant be responsible for their decisions, if you want to talk about exploitation and people making money off investments in dodgy companies and cheap labour have a word with your boss friends...UNITY IS STRENGTH.

[disheartened]

Hi,

I started on the RM March 1979 at 18 years of age,started paying in to an extra plan with equitable life,then that went tits up so transfered it to abbey life loosing a hefty percentage.I am lead to believe that you can only pay in to a private pension for a max of 40 years,so i'll be 58 going on 59,i was intending to go then if i could,surely my benifits ect could'nt be reduced even if the retirement age was to increase

[IWW Fellow Worker]

I don't believe captialism or communism or whatever ism is necessarily evil (as some commentators say)

There are different forms of communism and we could argue all night about which form is best. However, regarding capitalism, it has broken down twice within the last century into world war. It gave rise to racism and fascism, the latter within living memory. It is instrumental in maintaining child labour in the Third World and perpetuates health and education cuts here. It is capitalism which throws workers onto the scrap heap when they are willing and able to work for a living. It is a system which has long sinced passed any usefulness it might have possessed and this latest debacle in the world markets does nothing to make me change that view.

[dvbuk55]

I don't believe captialism or communism or whatever ism is necessarily evil (as some commentators say)

There are different forms of communism and we could argue all night about which form is best. However, regarding capitalism, it has broken down twice within the last century into world war. It gave rise to racism and fascism, the latter within living memory. It is instrumental in maintaining child labour in the Third World and perpetuates health and education cuts here. It is capitalism which throws workers onto the scrap heap when they are willing and able to work for a living. It is a system which has long sinced passed any usefulness it might have possessed and this latest debacle in the world markets does nothing to make me change that view.

I recognise the idealistic view and probably in youth shared the sentiment but, in reality, and in the fullness of time and old age I recognise the wheel turns and the moving finger writes and having writ moves on. The world revolves around capitalism and the ability of nations to employ, through businesses, as many workers as can possibly be employed. It is not possible for Governments to employ enough people to sustain a healthy economy and of itself breeds an unhealthy elitism. We at least have the power to change Government even though in modern times it seems to be a pointless exercise.

[baldrick]

Hi,

I started on the RM March 1979 at 18 years of age,started paying in to an extra plan with equitable life,then that went tits up so transfered it to abbey life loosing a hefty percentage.I am lead to believe that you can only pay in to a private pension for a max of 40 years,so i'll be 58 going on 59,i was intending to go then if i could,surely my benifits ect could'nt be reduced even if the retirement age was to increase

See http://www.royalmailchat.co.uk/forum/vi ... 3703#33703

If Jafferpants is right and he seems to know what he is talking about, RM could raise the
pension age to 65. Those of us who have already built up a pension fund, could still claim the pension
at our contracted age of 60 (or presumably earlier on EVR) but the amount would be reduced by about
5% for every year before the new retirement age of 65. So I would lose 25% of my pension if I still retired
at 60.