If the CDC new scheme is approved by government will we have the choice of staying in the current DCP scheme?

Sarah1970 · Post by **Sarah1970** » 02 Feb 2018, 06:41

Just a quick question. I have worked for Royal Mail for 5 months and am currently on the nursery scheme of the DCP pension.
If legislation is passed for a CDC scheme will Royal Mail give employees a choice of the new scheme or staying on the current DCP? Or will it be CDC or nothing?

Post by **RobertT** » 02 Feb 2018, 14:30

Firstly you will have to have been in the DC scheme for 12 months before you’re able to join the CDC scheme. Or 5 years to qualify for the transitional DBCB scheme.

I don’t think it actually says so unless I’ve missed it. But I think we will ultimately be given the opportunity to join or stay in the DC scheme if we want to.

posted · Post by **posted** » 02 Feb 2018, 17:03

I asked the question today (minus eligibility criteria).
You can stay in the DC scheme until the CDC scheme becomes active.
Until then, you can choose to stay in DC scheme or move to new DBCBS scheme (subject to eligibility).

Once the CDC scheme goes live it will replace both the DC scheme and DB scheme. RMG only want to run one scheme for all members.

Text from agreement on section 11. Pensions...

Against that backdrop, we have jointly agreed to introduce one new wage in retirement
pension scheme for all CWU represented grades in the RMG to replace the current DB
and DC Schemes. This will be based on a collective structure which provides retirement
security and shares risk between employees and the company.

Schiff · Post by **Schiff** » 02 Feb 2018, 19:37

posted wrote:I asked the question today (minus eligibility criteria).
You can stay in the DC scheme until the CDC scheme becomes active.
Until then, you can choose to stay in DC scheme or move to new DBCBS scheme (subject to eligibility).

Once the CDC scheme goes live it will replace both the DC scheme and DB scheme. RMG only want to run one scheme for all members.

Text from agreement on section 11. Pensions...
Against that backdrop, we have jointly agreed to introduce one new wage in retirement
pension scheme for all CWU represented grades in the RMG to replace the current DB
and DC Schemes. This will be based on a collective structure which provides retirement
security and shares risk between employees and the company.

That makes the much vaunted new pension scheme far worse for many members who don't intend working until anywhere near 67. The union are a shambles for allowing this. Royal Mail must be laughing their a***s off at the union shafting a significant portion of their membership.