CWU Proposal

[yellowbelly]

But this was for 2016 - you would expect the figure for 2017 (when it is finalised) is way more in favour of 'return-seeking assets' after the recent market surge.

Just in time for the stock markets to probably take a dive....... The time to be in the stock markets is before they go up not after but after the Maxwell and Equitable
Life Pension Scandals trustees were inclined (if not required) to invest in safer bonds and cash etc and not equities.....

[jetblack]

112 years is a large enough timescale for me.

That graph was produced by Barclays Bank for its Equity Gilt Study 2016. I found it via a Google.

Re. RM paying £400m vs £500m. Wether thats worthwhile for them depends upon what their priorities are. Dividends and share price, or a workforce that is done right by ?

And as Dingo stated, the unaffordability of the scheme wasn't based on it being circa £500m going forward, but £1billion.


This proposal looks to me like something worth fighting for.


edit. The graph shows UK asset class returns with income reinvested

[daveyeff]

as dingo says though, it shows the contempt RM has for us. they were bleating on about the cost rising from 400m to 1 billion, yet this new proposal is an affordable alternative. but it turns out they want to reduce the cost they ALREADY pay by 70 million. AND giving us a shittier return. I hope we get a ballot and stick it right up these arrogant bastards, but I honestly fear we wont get the yes we need.

[stephen500]

The CWU proposal is for a united DB scheme which would mean the closure of the current DC scheme and DB scheme.

The new DB scheme would require Royal Mail to pay 17.1% contributions. This should not be that much a problem as in Royal Mail's communications they claim that from April 2018 under the new DC scheme they would still be paying 17% , 10% pension contributions and the remaining cost is the death benefit and windowers cost.

The proposal the union have put would have safeguards for Royal Mail so the cost would not increase above 17.1%.

The unions proposal would be a pension scheme which would be invested in grow and not be cautious in investing in guilds or bonds.

Each year the pension will be valued against RPI and will when the pension exceeds RPI will be increased and where it does not it will not automatically increased.

The CWU proposal has been reviewed and tracked over the last 21 years from 1997 until 2016. In 3 of those years there would have been increased , however over the 21 years it would have paid an average of 3.4%.

In those 21 years it would have exceeded a final salary scheme , the current DB scheme and would have paid significantly higher than any DC scheme.

The union has even looked at if over those 21 years it did produce any increase it would have still beaten by some distance Royal Mail"s proposed DC scheme.

The other difference is you take this pension at the state age of retirement which will be different depending on your birth date. You can still take this pension early from 55 with the normal 5% reduction per year.

Your other two pensions i.e. The service up to 2008 can still be taken in full from 60 and the current DB from 65. The new proposal will just be a third pension pot for service from April 2018.

For those who are in the current DC scheme and will not have a good pension this is a massive improvement as they will be in a united scheme which will deliver a reasonable pension in retirement. For those in the Current DB scheme this is good replacement and over the last 21 years it would have produced a better return than a final salary or the Current DB scheme and would have dwarfed a DC scheme.

Royal Mail currently pay 400 million per year into pensions including the cost of the DB and DC scheme. The unions proposal for a united scheme is 500 million which is the equivalent of 2.5% pay rise.

The united scheme is the right thing for all members and is worth fighting for.

Royal Mail's response shows the contempt they have for us. They say that their current pensions costs are 400 million and they want to reduce this by 70 million and this would be the national insurance costs.

If Royal Mail continue this position that the union will ballot. We all deserve a decent affordable pension. The union's proposal delivers this. SUpport the CWU.

If you are right Dingo, then what I have read of the scheme above is fine, as long as what you say about me being able to take my NRA 60 at 60 and My Nra 65 at 65 or 60 with 5% reductions for each year is true. I have also asked pension HQ if I can still take max lump sums for Nra 60 and 65 and they have confirmed I can.

[daveyeff]

not to be pedantic,,,, but from 1997 to 2016 is 19 years not 21