CWU to Royal Mail: 'Take executive action on our pensions and we'll ballot'

[TrueBlueTerrier]

http://www.cwu.org/media/press-releases ... ll-ballot/" onclick="window.open(this.href);return false;

For immediate release
5th January 2017

CWU to Royal Mail: ‘Take executive action on our pensions and we’ll ballot’

Royal Mail bosses were warned today that any unagreed pension changes will spark a national strike ballot, following the company’s announcement of a formal consultation.

The union’s Deputy General Secretary Terry Pullinger reminded the business that CWU already has a “robust policy commitment” to enact formal industrial action proceedings if members’ defined-benefit (DB) pension scheme is closed without agreement.

Royal Mail’s decision to launch the statutory consultation had been “anticipated for some months,” Terry said, and added that, although the company had expressed the view, in this morning’s statement, that they want to close the DB scheme, “a final decision has not yet been made.

“So,” he continued: “We move from shadow boxing to the ring and negotiations will now begin in earnest, and the CWU is fully committed to developing an agreed solution which maintains the pension promise of a wage and dignity in retirement for all of its members. Both those in the current defined benefit and defined contribution schemes.

“However, any attempt to introduce any unagreed change by the business would be met with an industrial action ballot.

“It has to be understood that the industrial stability agreement with legally binding aspects, which took us into privatisation, has at its core the joint commitment to mutual interest solutions. The business faces many challenges going forward and the union will always insist that solutions will have to be via agreement and will have to reflect the balance of mutual interest for both employees and the company.”

-Ends-

[TrueBlueTerrier]

Martin Walsh London Divisional Rep

The expected decision by Royal Mail to close the DB scheme has been made.

Royal Mail's decision to transfer from all those in the DB scheme to the DC scheme will be a game changer and will save them and the shareholders millions.

Their decision to only pay 10% employer contributions in the DC scheme rather than the current 17.1% will mean we will all be worse off in retirement.

The decision to pay only 10% pension contributions mean they now pay £28.86 on the national rate less on pensionable pay for a full timer, £34.86 less on outer London and £36.20 on inner London.

Remember in the defined contribution scheme your shift allowances are not pensionable.

The information Royal Mail give as examples of what an individual will lose and clearly the longer someone has to work till their 65 in the DC scheme the worse they are off.

For example someone who is 40 years of age and has worked for Royal Mail for 10 years and was in the DB scheme they would get a pension pot of £10, 281 per annum , Royal Mail's decision to transfer them into the DC scheme Post 2018 will mean their pension pot will be reduced by almost half to £5,683 per annum.

Royal Mail can afford more! Don't let them condemn you to pensions poverty make sure you stand with your union for a fair pension in retirement!

[stephen500]

Relived I have four years to go and very sad for 30 to 40 years olds.

[barrychuckle]

Nobody will go on strike we all want to win a poxy car.

[DirtyHarry]

I have gone on strike so the CWU could 'agree' change.
Wish I hadn't bloody bothered, to be honest.

[Tman]

Martin Walsh London Divisional Rep
Remember in the defined contribution scheme your shift allowances are not pensionable.
!

A bit of good news there then. Less contributions from us over the years leading up to retirement.

[wandle]

Martin Walsh London Divisional Rep
Remember in the defined contribution scheme your shift allowances are not pensionable.
!

A bit of good news there then. Less contributions from us over the years leading up to retirement.

Seriously, you think that's a GOOD thing ??

A slight increase in your take-home pay now, at the cost of your future pension being butchered ?

[DirtyHarry]

What's the betting that the overly generous pensions of executive directors will increase in that time?
Who would bet against that happening?

[Tman]

Seriously, you think that's a GOOD thing ??

Yes.

A slight increase in your take-home pay now, at the cost of your future pension being butchered ?

I reckon you don't quite get the idea of "pensionable" and non-pensionable" payments.

[LouBarlow]

If they agree to pay me back all the money I've paid over the years, as a lump sum, I'd gladly opt out of the scheme completely.

[RobertT]

If they agree to pay me back all the money I've paid over the years, as a lump sum, I'd gladly opt out of the scheme completely.

That won't be anywhere near as much as you think it'll be.
Factoring in tax relief, personally I would only have to draw my NRA60 pension for about 3 years to get back the money I've put in over nearly 30 years of service. Everything after that is 'profit'.

That's one of the reasons the RMPP is a very valuable scheme to be a member of.

[cloherty1976]

That won't be anywhere near as much as you think it'll be.
Factoring in tax relief, personally I would only have to draw my NRA60 pension for about 3 years to get back the money I've put in over nearly 30 years of service. Everything after that is 'profit'.

That's one of the reasons the RMPP is a very valuable scheme to be a member of.

On reading the booklet don't we have the opportunity of investing our own pension in funds of our own choice. So if you invest wisely surely you could make more money than you would get now. Also maybe your investment choices go badly wrong and you could get less.

[fishtank]

If they agree to pay me back all the money I've paid over the years, as a lump sum, I'd gladly opt out of the scheme completely.

Since they've put in almost 3 times what you have and adding in investment returns I think RM would bite your hand off if they could get away with that.

[RobertT]

That won't be anywhere near as much as you think it'll be.
Factoring in tax relief, personally I would only have to draw my NRA60 pension for about 3 years to get back the money I've put in over nearly 30 years of service. Everything after that is 'profit'.

That's one of the reasons the RMPP is a very valuable scheme to be a member of.

On reading the booklet don't we have the opportunity of investing our own pension in funds of our own choice. So if you invest wisely surely you could make more money than you would get now. Also maybe your investment choices go badly wrong and you could get less.

We will be given a choice of funds to invest in, i believe the current RMDCP has 11 or 12 different investment options.

The RMPP gives us a guaranteed index linked pension for life, while the DC scheme gives us a pot of money to invest. Average investment returns plus low annuity rates would suggest that the DC option will give a lower income most of the time.

[Dorset Plodder]

I note they're already priming the Dickheads for a bribe....Page 2 "Active Plan members as at 31 March 2018 would be given a one-off £750 payment. if the proposal is implemented".

Most of the idiots in my office would sell their Grannie for that. Over the years they've gradually signed away T & Cs for a few quid here, and a few quid there. They're so bloody short sighted I'm surprised they can see to deliver the mail!

If they were to offer that much as a Bung I'd have thought they'd have at least said, "A payment of £750 will be put into your New Pension Account". I was always told that if you had a bit of money bung it into your Pension pot as it makes a big difference to the end pay out (there's a lot of weekly payments in that £750)

Oh sorry I forget... that's thinking about the long-term benefits to the employee..... we're just trying to bribe them in the short-term!