Future of RMPP letter today

vmaxv4 · Post by **vmaxv4** » 25 Jun 2016, 13:17

Received the above letter about keeping the plan open until March 2018.But clearly stating that the plan is unaffordable after.
Your thoughts on what the possible alternatives after March 2018
Cheers

Post by **RobertT** » 25 Jun 2016, 13:27

It’s already been covered on other threads, but the likelihood is that the NRA65 will be ring fenced in a similar way to the NRA60 and will only go up with inflation each year from 2018 onwards.

The RMPP will then be replaced by the RM Defined Contribution Plan.

Post by **rambo1** » 25 Jun 2016, 15:05

It's in a mess due to tough market conditions since 2013. What on earth does the future hold now since the referendum? If the last three yrs have been tough, you ain't seen nothing yet.

Post by **TrueBlueTerrier** » 25 Jun 2016, 15:10

hans solo · Post by **hans solo** » 25 Jun 2016, 19:14

can we not ask for our contributions back and invest them ourselves

or maybe we should just stop paying in

Post by **RobertT** » 25 Jun 2016, 19:28

hans solo wrote:can we not ask for our contributions back and invest them ourselves

No chance of that happening I'm afraid.

or maybe we should just stop paying in

And get even less pension????????

Hawkey99 · Post by **Hawkey99** » 25 Jun 2016, 19:33

Didn't receive my letter today.

Did it say when consultation period starts and finishes.

Did it mention AVCs.

Thanks

Post by **RobertT** » 25 Jun 2016, 19:39

Hawkey99 wrote:Didn't receive my letter today.

I'm sure you'll get it in due course.

Did it say when consultation period starts and finishes.

No.

Did it mention AVCs.

No.

Post by **aiden01** » 25 Jun 2016, 20:59

Hawkey99 wrote:Didn't receive my letter today.

Did it say when consultation period starts and finishes.

Did it mention AVCs.

Thanks

Probably missorted

big ginger · Post by **big ginger** » 25 Jun 2016, 23:44

How convenient this letter arriving just two days after brexit! All the more reason to reject Royal Mail's feeble pay offer.

Post by **nataddick** » 28 Jun 2016, 08:49

The key point that the letter makes several times is that the although RM have committed to keeping the Plan open until at least March 2018 this is subject to certain conditions ! We have known this since the last proposal was made back in 2013 and these conditions were specifically listed in that proposal document :-

Personally, I think RM are moving to close the scheme earlier and will blame Brexit for the change - I was fully aware of the change but surprised to receive the letter so far in advance.

Conditions
If we reach agreement with the unions and other stakeholders we would
commit to keep the Plan open to you unchanged at least until we have
concluded our next review, subject to certain conditions continuing to be
met throughout that period and provided financial markets do not
deteriorate further. The final terms of these conditions would be notified to
you at the time an agreement is made. However, we would currently expect
these conditions to include:
Funding and contributions
• The Plan remaining above 100% funded on the measure of the liabilities
agreed with the trustees from time to time;
• The standard contributions payable by the employer remaining at current
rates of CSDB pensionable pay; and any interim valuation carried out by
the Plan Trustee (taking into account any new legislative or regulatory
requirements) not requiring additional contributions of more than £50m
per annum;
• and the Company remaining a going concern.
Legislative, regulatory and other changes
• No new legislative and regulatory requirements imposed by the UK
Government or the European Union causing an adverse impact on the
Plan;
• No changes in investment market conditions, new legislative and
regulatory requirements and/or other factors outside the Company’s
control, causing a materially adverse impact on the how the Plan must
be recognised within the Company’s financial statements, or on
profitability and/or the Company’s net assets.

Financial markets
Financial markets are where the Plan holds, buys and sells the investments
that it uses to pay member benefits. These include investments such as
company shares and government or corporate bonds. The yields on bonds
and expected future returns on other investments are used to calculate the
money that should be set aside now to pay benefits in the future. In recent
years, pension costs have increased due to the historically low yields on
bonds and lower long-term expected returns on other assets. Yields on
corporate bonds are also used to directly calculate the cost of pensions in
company accounts.

GRS · Post by **GRS** » 28 Jun 2016, 17:34

How comes you never hear of the pension performing well nowadays. Constant bad news over the years about it and yet I've never had a letter saying that the pension has performed better than expected etc etc. Always an excuse as well - it doesn't seem to matter whether our economy is in dire straits or strong. Seems extremely dodgy to me - would love to know how much has and will be creamed off over the years by others. Wonder if Moya and her cronies have had their pensions raped or whether that's what we're funding. This needs looking at more closely than by a few old Union boys glancing over the proposals in a smoky room before they rubber stamp it. Can't believe a pension fund can consistently be performing that badly that it needs constant downgrading. Can see in a few years time that they'll have run off with the lot and the pot will be empty.