Cwu pension proposal

[Rommagic]

In simple terms please?.

[Tman]

You ain't getting as much as you were promised.

[Rommagic]

You ain't getting as much as you were promised.

If Royal Mail accept it from the cwu they are still paying 17 per cent and we paying 6 per cent.So what would we lose?.

[TrueBlueTerrier]

In simple terms please?.

Its not simple but the best way I can break down the CWUs proposal is.

1. It remains a defined benefit scheme but Royal Mail pay less in.
2. The Pension trustee will be allowed to invest in higher yielding (and more volatile) markets.
3. We pay more and we will get less. but not as drastic as RMs current proposal.
4. It will be a Business-wide pension, including new starters and those already on the Defined contribution scheme.

[Rommagic]

Thanks.

[jetblack]

The CWU proposed scheme is defined benefit. But the assured return is less than it would have been under the current scheme. However, taking historical returns and precedence of the proposed (new) assets (allocation) into account, the new scheme will actually pay out better than the current scheme.

For a member with 21 years service (full time), with salary at NRA of £21,440, then based on expected (historical) returns, the proposed scheme will give a pension at NRA of £8,573.
If the new asset allocation returns plummet (and do that year after year after year) then that will drop to £5,554.

The current scheme would give a £7,099 pension. The final salary scheme (now defunct) would have given £7,504.

The DC scheme would give £1700 (based on a £69k pot)


The proposed scheme is a compromise of sorts.

Its well worth fighting for.

[Supersonicvandriver]

From what Hillary says on the video. she wants to move it inline with state pension. So does that mean you cant claim it till your 67 or older. If so i'm not looking forward to 7 extra years at work.

[stephen500]

From what Hillary says on the video. she wants to move it inline with state pension. So does that mean you cant claim it till your 67 or older. If so i'm not looking forward to 7 extra years at work.

I don't think any one can stop you taking a pension at 55, it is the law. But it can be reduced as per the Nra 60 and 65 at 5% per year. What the new CWU scheme reductions would be I don't know. But I can't see how they can stop you taking it, as I said it is the law.

[jetblack]

As far as I am aware CWU proposal just means new RM pension age is in line with state retirement age ie. not 65. Everything else would be as before with regards early retirement. Can't see why reduction would be any more or less than the current 5% - suppose we'll have to wait and see. If, of course, the proposal is given any credence by TPTB.

[vmaxv4]

So from 2018 all pension accrued will be tied to state pension age.
A friend of mine in his early forties with half his pension in the pre 2018 & half in the new Winrs scheme. He wishes to retire at 65, but can only take the pre 2018 ( and is not wanting to take any NRA's earlier than necessary) until 65..
How does he manage on half pension for 2 years ?
Are the CWU really asking us all to work to state retirement age?
How can this be a progressive scheme when this one idea gets worse the longer time goes on.

[k979aaa]

So from 2018 all pension accrued will be tied to state pension age.
A friend of mine in his early forties with half his pension in the pre 2018 & half in the new Winrs scheme. He wishes to retire at 65, but can only take the pre 2018 ( and is not wanting to take any NRA's earlier than necessary) until 65..
How does he manage on half pension for 2 years ?
Are the CWU really asking us all to work to state retirement age?
How can this be a progressive scheme when this one idea gets worse the longer time goes on.

Probably expect us all to die before retirement worked to death but I expect nothing less from a shite business with a shite management with a shite boardroom of corporate greed and at the head of which is MOYA GREENE!

[jetblack]

So from 2018 all pension accrued will be tied to state pension age.
A friend of mine in his early forties with half his pension in the pre 2018 & half in the new Winrs scheme. He wishes to retire at 65, but can only take the pre 2018 ( and is not wanting to take any NRA's earlier than necessary) until 65..
How does he manage on half pension for 2 years ?
Are the CWU really asking us all to work to state retirement age?
How can this be a progressive scheme when this one idea gets worse the longer time goes on.

If state retirement age by the time your colleagues time comes is, say, 67 and he wishes to retire at 65 - he takes his NRA 65 as normal, then takes a 10% reduction on the new scheme payout.

Not perfect, no, but your colleague will be way way better off this way than if he retires at 65 on the RM proposed DC scheme - or at 67 for that matter.

Its all academic at this point anyhow - and please don't take my word as gospel on this, I may well have misunderstood the CWU proposal.

[RobertT]

All service up to 2010 has a normal pension age of 60. From 2010 to 2018 it’s 65. And under the CWU’s proposal from 2018 onwards it would be state pension age, which at the moment could be 65, 66, 67 or 68, depending on your current age. And those ages are likely to increase in the future, particularly for the younger generation.

The current legal minimum age to access any pension is 55, but there are reductions if taking it before NRA. There is no reason to think that will change under there proposals.

The CWU’s WiNRs scheme will mean potentially getting your post 2018 pension later than you would get it now, but then the alternative would be RM’s DC pension which would be a lot worse.

Ultimately it would be up to the individual as to whether they could afford to retire early or not, just as it is now.

[vmaxv4]

As Ralph Ferret said in his video.. "There's no way to dress it up so I won't insult your intelligence" hmmm
Can't wait to see how the numbers stack up on this one..
BTW my friend is our rep who's expected to sell this as the way forward, oh sorry we've had that tag line before..

[Rommagic]

Nothing good on the table from Royal Mail to put to us?.