Exclusive: Ministers Eye £24bn Royal Mail Pension Restructur

[TrueBlueTerrier]

Exclusive: Ministers Eye £24bn Royal Mail Pension Restructuring

http://blogs.news.sky.com/kleinman/Post ... b4f34a5833" onclick="window.open(this.href);return false;

Ministers are preparing for a radical restructuring of Royal Mail's £24bn pension fund as part of efforts to position the postal operator for a private sector future.
I have learned that the Shareholder Executive, which manages publicly-owned businesses on behalf of the State, is seeking an advisory firm to help it restructure the assets held by the giant pension fund.

People close to the process tell me that the Government is likely to liquidate some of the assets held in the fund, such as holdings of private equity, real estate and public equities.

The Government's move to appoint external advisers is separate to the procedure through which it is attempting to take on Royal Mail's historic pension liabilities. MInisters have submitted a state aid application to the European Commission which is ultimately likely to involve restructuring the company at a cost of tens of thousands of jobs.

Royal Mail and the Shareholder Executive both declined to comment.

[hubbahubba]

Exclusive: Ministers Eye £24bn Royal Mail Pension Restructuring

http://blogs.news.sky.com/kleinman/Post ... b4f34a5833" onclick="window.open(this.href);return false;

Ministers are preparing for a radical restructuring of Royal Mail's £24bn pension fund as part of efforts to position the postal operator for a private sector future.
I have learned that the Shareholder Executive, which manages publicly-owned businesses on behalf of the State, is seeking an advisory firm to help it restructure the assets held by the giant pension fund.

People close to the process tell me that the Government is likely to liquidate some of the assets held in the fund, such as holdings of private equity, real estate and public equities.

The Government's move to appoint external advisers is separate to the procedure through which it is attempting to take on Royal Mail's historic pension liabilities. MInisters have submitted a state aid application to the European Commission which is ultimately likely to involve restructuring the company at a cost of tens of thousands of jobs.

Royal Mail and the Shareholder Executive both declined to comment.

Selling all the family silver before the big sell off-good old Torys............ :dcfo :ncfo :vcfo

[fishtank]

Selling all the family silver before the big sell off-good old Torys............ :dcfo :ncfo :vcfo

I wouldn't mind but it's not their f***ing silver..

[hubbahubba]

Selling all the family silver before the big sell off-good old Torys............ :dcfo :ncfo :vcfo

I wouldn't mind but it's not their f***ing silver..

True,but then again,what's new?

[dan1986ccfc]

Hi all,

Ive had a pension with Rm for about 2 years now and still have atleast 40 years to go. I keep hearing that this pension is not safe and I would be best off transferring it somewhere else.
I have read the link provided and have tried to research more. Economics isnt really my strong point so despite several hours research I still can't decide what to do!

So... shall I withdraw all of my RM pension and look elsewhere?

Many Thanks
Dan

[TrueBlueTerrier]

To be honest its not a good idea to make such an important decision without seeing an independent financial advisor, and even then I would still research more.

You may get opinions and insights on here but that's all they will be - please whatever you do, don't base any financial decision of such importance on what you read on the internet. It may cost you a little more than you want but a financial advisor is the best way to make sure you cover all the bases.

However, my opinion is that ANY employment based Pension (where an employer also contributes) is better than a Private Pension where only you pay in.

Royal Mail Pension is in liability deficit of £8 billion. As I understand it, it does not mean that RMPF owes that amount, it means that if they had to pay all current liabilities (ie pay everyone who is entitled either to a pension or a payout) immediately. Also it is fairly certain that the HMG is going to take on the deficit anyway when we are privatised.

So my advice, with the above caveats, is keep paying into the pension, its pretty safe as things go.

[dan1986ccfc]

To be honest its not a good idea to make such an important decision without seeing an independent financial advisor, and even then I would still research more.

You may get opinions and insights on here but that's all they will be - please whatever you do, don't base any financial decision of such importance on what you read on the internet. It may cost you a little more than you want but a financial advisor is the best way to make sure you cover all the bases.

However, my opinion is that ANY employment based Pension (where an employer also contributes) is better than a Private Pension where only you pay in.

Royal Mail Pension is in liability deficit of £8 billion. As I understand it, it does not mean that RMPF owes that amount, it means that if they had to pay all current liabilities (ie pay everyone who is entitled either to a pension or a payout) immediately. Also it is fairly certain that the HMG is going to take on the deficit anyway when we are privatised.

So my advice, with the above caveats, is keep paying into the pension, its pretty safe as things go.

Thanks

[RobertT]

I've had a pension with Rm for about 2 years now and still have at least 40 years to go.

If you started work with RM after April 2008, you will be a member of the RM Defined Contribution Plan(RMDC), not the final salary / average salary version. You will not be affected in any way by the pension deficit or the government taking over the scheme's liabilities.

I keep hearing that this pension is not safe and I would be best off transferring it somewhere else.

Assuming you're a member of RMDC, your pension is safe other than being at the mercy of the stock market, and is basically the same as any personal / stakeholder scheme that you would be transferring into, except RM also pay in money for you and management charges may also be lower.

So... shall I withdraw all of my RM pension and look elsewhere?

In my opinion that would be one of the worst financial decisions anybody could make!

[dan1986ccfc]

Thanks Robert.
I will be keeping the pension where it is for now