Our pension proposal: the company’s decision

[POSTMAN]

The company has made a decision about the Royal Mail Pension Plan (RMPP) proposal.

Please read the letter and table, by clicking on this link...


http://www.myroyalmail.com/sites/defaul ... 0FINAL.pdf" onclick="window.open(this.href);return false;

[borders]

can anyone who really understands Pensions , is this good or bad for us !!??

[cyclemech1]

can anyone who really understands Pensions , is this good or bad for us !!??

The way I read it is that (apart from very senior management) they've caved in on everything and are trying to dress it up as if they've achieved something.

They don't want to let the plebs know that they have won!

[DGP1]

RobertT is the man for pensions, he'll be able to put it simply so that our frazzaled little minds can understand it

[mr hil.]

They have left in the 5% cap, so if in future RPI or inflation rises above 5% our pensions will not keep pace and so will be worth less at the end. Also if we get a pay rise that is above the RPI this would not all be included, once again making the final salary pension NOT an ACTUAL FINAL SALARY PENSION.

I think that's right but I am sure more learned folks will correct me if I am wrong.

[barrowc]

This part talks about "a material adverse impact on the Plan" but doesn't specify what exactly would count as a material adverse impact:

The Company’s commitment to keeping the Plan open without further rule changes will be periodically reviewed. The first periodic review will be completed by March 2018. However, there are certain conditions which, if not fulfilled, may trigger an earlier review. These conditions are:

* The Company contribution rate remaining at the current level and any actuarial valuation not requiring additional contributions of more than £50 million each year;
* The Company remaining a going concern; and
* No factors outside the Company’s control causing a material adverse impact on the Plan or how the Plan must be recognised within the Company’s financial statements.

At any review, the Company would assess (along with expert advisors and the unions) the affordability of the Company’s pension schemes and the Company’s financial position. The scale of any problem would be identified and potential courses of action developed and discussed with all stakeholders before any action is taken.

[Shambles]

This part talks about "a material adverse impact on the Plan" but doesn't specify what exactly would count as a material adverse impact:

The Company’s commitment to keeping the Plan open without further rule changes will be periodically reviewed. The first periodic review will be completed by March 2018. However, there are certain conditions which, if not fulfilled, may trigger an earlier review. These conditions are:

* The Company contribution rate remaining at the current level and any actuarial valuation not requiring additional contributions of more than £50 million each year;
* The Company remaining a going concern; and
* No factors outside the Company’s control causing a material adverse impact on the Plan or how the Plan must be recognised within the Company’s financial statements.

At any review, the Company would assess (along with expert advisors and the unions) the affordability of the Company’s pension schemes and the Company’s financial position. The scale of any problem would be identified and potential courses of action developed and discussed with all stakeholders before any action is taken.

Hmmm, very ambiguous to say the least....potentially more holes than a tetley tea bag