Moya Greene's reply to my e mail

[stephen500]

Moya's reply to my e mail (reproduced underneath for context)

Stephen

Many thanks for sharing your thoughts on our proposed changes.

You are right that the changes will have much bigger impact on people with relatively shorter service. I can assure you that no one is underestimating the impact on people's pensions. We know it will be significant.

Unfortunately the cost increase to 50% of salary is just unaffordable for the company.

We did explore a number of options, including asking employees to contribute more. Even if employees doubled their contribution that would still leave a gap in costs of over £400m.

We have not taken the decision lightly. We know people will be extremely disappointed.

With respect to defined contribution, the 10% contribution rate is on all basic pay. At the moment the 17% does not apply to the first £3300 of people's pay in section C. Additionally to the 10%, the company will also be paying for insurance on death benefits and ill health cover. This is currently included in the 17% that we pay and it adds another 2-3% on the DC costs. You have mentioned there is an additional NI cost falling on the company too. So that's how we get from 17% to 10%.

Moya

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From: stephen
Sent: 06 January 2017 22:34
To: Moya Greene
Subject: Pension proposals

Dear Moya Greene,

I joined Royal Mail in the 70s and currently will have 38 years service in 2018.
At 18 i was compulsory enrolled into the Post Office pension scheme.
As a young man the very thought of joining a pension scheme would never have occurred to me. But my union and Post office management having my best interests at heart made me join so that I could have a decent future when I retired.
As a 57 year old in 2018, the changes you are proposing inflict min damage to my pension.
I can only breathe a sigh of relief that I am near retirement,
Currently my night allowance is fully pensionable and my pensionable pay is increased because of it by £5000 per annum.
You propose to remove all allowances from our pensions, reducing pensions and lump sums at a stroke.
As I am near retirement, these changes are not that worrying for me,H
however these proposals for many are life changing and draconian.
A thirty year old post person with 10 years service on £25000 in 2018, currently can expect a pension of £15,000 will see it reduced to £7500.
A thirty year old manager with the same service and a £40000 income can expect his/her pension to reduce from £25000 to £12500 and a 40 year old with 20 years service reduce from £24882 to £16859. Meaning a reduction in pension (per year) of £7530, £13154 and £8024.
The average changes for section C members on £25000 of minus 8% at 60 and 17% at 65. Whilst those on £40000 income see an average reduction in benefits of 8 % and 65 of 19% (Both reduction rates incl the state pension ( see pages 27 to 33)
Some even see their pension contributions increase for less money, which even then in a defined contribution scheme is not guaranteed, with all the risk being place on the employee and none on the employer.
Royal Mail say that their contributions are staying the same, how can that be, when on page 2 of the introduction letter, you state that "The company would expect to make...around the same..in 2018/19 as..2015/16"
You also state that you will pay up to 10% in contributions, whilst currently paying 17%, a reduction that is plain to see for all.
Yes it is noted that Royal Mail covered the £65 M in costs of the change to Nat Ins.
Royal Mail states it has explored other options and appears to have dismissed out of hand a voluntary increase in personal contributions.
Is this because Royal Mail does not wish to match this? Who is asking them to match it?
Overall for young post persons and managers to see up to a 50% reduction to their pensions is my worst moment in nearly 40 years of employment in Royal Mail.
I hope you take an opportunity to review these proposals and change them to bring them back to a decent pension.

Yours sincerely,

Stephen

OPG, Mail centre.

[jetblack]

Dear Moya,
someone on RoyalMailChat recently made the comment that a pension is not required when you are a millionaire. I would tend to agree and would contend therefore that a millionaire might not be the best choice in the world when it comes to deciding on the pension provision of ordinary working people. What do you think ?
Yours sincerely
JetBlack


Dear Mr.Black,

Thanks for your contribution. We have fulfilled our statutory obligation to consult and inform the workforce re. pension changes - now you can f**k off.

Yours sincerely

Moya