https://www.pensionsworld.co.uk/article ... fit-scheme" onclick="window.open(this.href);return false;
Royal Mail is consulting on the closure of its defined benefit (DB) pension scheme.
If nothing changed, from April 2018 Royal Mail says it would need to pay over £1bn a year to fund members’ pension benefits. This would increase its contributions from around 17% of pensionable pay to over 50%.
The loss of DB pension provision at the Royal Mail represents a significant milestone towards the extinction of this type of employee benefits.
Commenting, Charles Cowling, director, JLT Employee Benefits, says: “As the third largest provider of final salary pensions in the FTSE 100, Royal Mail represents one of the largest private sector employers to succumb to the untenable pressure of running those schemes. Recent closures include Tesco, HSBC and Aviva. According to our research, only 23 FTSE 100 companies, which includes Tesco and Royal Mail, still provide defined benefit pensions to a significant number of employees.
“Although this would be deeply regrettable for Royal Mail’s employees, it is no surprise, as discussions have been going on for some time. Spiralling costs and ever more challenging pension legislation have for many years driven the private sector to close their DB schemes. We have now reached a point where even the largest private sector employers are following this trend. Very soon final salary pensions will become an exclusive benefit only available to public sector employees.”
ANNOUNCEMENT : ALL OF ROYAL MAIL'S EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (Updated 2021)... HERE
ANNOUNCEMENT : PLEASE BE AWARE WE ARE NOT ON FACEBOOK AT ALL!
Royal Mail consults on closure of its defined benefit scheme
-
TrueBlueTerrier
- FORUM ADMINISTRATOR
- Posts: 72559
- Joined: 30 Dec 2006, 10:29
- Gender: Male
- Location: On my couch
Royal Mail consults on closure of its defined benefit scheme
All post by me in Green are Admin Posts.
Any post in any other colour is my own responsibility.
If you like a news story I posted please click the link to show support Any news stories you can't post - PM me with a link
My sharing of news articles should not be interpreted as an endorsement or condemnation of any particular viewpoint or the issues presented. I share them solely for informational purposes.
Any post in any other colour is my own responsibility.
If you like a news story I posted please click the link to show support Any news stories you can't post - PM me with a link
My sharing of news articles should not be interpreted as an endorsement or condemnation of any particular viewpoint or the issues presented. I share them solely for informational purposes.
-
Spedley
- Posts: 1209
- Joined: 16 Jul 2007, 17:32
- Location: Warwickshire
Royal Mail consults on closure of its defined benefit scheme
Wow, that is a bit of a loaded article. "It's terrible it happened but it was bound to eventually." is what I read.
It doesn't mention any need to reduce from 17% down to 10% or is that just obvious?
It doesn't mention any need to reduce from 17% down to 10% or is that just obvious?
-
Phantom
- Posts: 1234
- Joined: 27 Dec 2007, 18:17
- Gender: Female
- Location: New York
Royal Mail consults on closure of its defined benefit scheme
RM paid out over £600 million in dividend payments so that £600m + £400m = £1billion and now you know where the pension money has gone!!!
CUT OFF!!!
-
wdo1256
- Posts: 107
- Joined: 10 May 2007, 19:44
- Location: Wirral
Royal Mail consults on closure of its defined benefit scheme
None of us want the changes to happen, especially after the last amendment was supposed to be the final solution from a final salary scheme. If it does happen again we have to get protection in writing as I don’t want us to become another ex – nationalised company that is being milked solely for the benefit of shareholders.
1/ In 2009 the Royal Mail pension was overhauled. Adam Crozier and the top 150 Royal Mail managers were given an exclusive enhanced pension, a pension that had better terms compared to the pension given to the remaining staff.
We cannot let this happen again, if the people at the top have the same terms as us they will ensure that we all get the best deal possible.
2/ If Royal Mail can find £750 to invest in everyone’s pension as a one off payment. Why can’t they make this a yearly commitment?
Extra payments could be diverted from money due to shareholders dividend, we could get an agreement that a percentage of the dividend would go into the pension.
Or we could use a percentage from our yearly profit to increase our pensions.
If we get some form of cover it may send the share price down and hopefully people who are interested in the service and staff will invest in shares. I know it's a bit rose tinted glasses.
1/ In 2009 the Royal Mail pension was overhauled. Adam Crozier and the top 150 Royal Mail managers were given an exclusive enhanced pension, a pension that had better terms compared to the pension given to the remaining staff.
We cannot let this happen again, if the people at the top have the same terms as us they will ensure that we all get the best deal possible.
2/ If Royal Mail can find £750 to invest in everyone’s pension as a one off payment. Why can’t they make this a yearly commitment?
Extra payments could be diverted from money due to shareholders dividend, we could get an agreement that a percentage of the dividend would go into the pension.
Or we could use a percentage from our yearly profit to increase our pensions.
If we get some form of cover it may send the share price down and hopefully people who are interested in the service and staff will invest in shares. I know it's a bit rose tinted glasses.